REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
6<br />
PERFORMANCE HIGHLIGHTS<br />
41st ANNUAL REPORT 2009-10<br />
The Company continued to register higher growth and record performance for the year 2009-10, in key areas of Disbursements of Loans,<br />
Recoveries, Operating Income and Profits. A total sum of Rs.27127.14 crore was disbursed during the year 2009-10, up by 22%, as against<br />
Rs.22277.86 crore in the previous year, including subsidy under RGGVY. A sum of Rs.12496.12 crore was recovered during the year as<br />
against Rs.9796.97 crore in the previous year. The Gross Non-Performing Assets (NPAs) were negligible and stood at Rs.19.54 crore (i.e.<br />
0.03% of Gross Loan Assets). The Operating Income went up to Rs.6549.76 crore, up by 38%, from Rs. 4757.17 crore in the previous year.<br />
The profit after tax increased to Rs.2001.42 crore, up by 57%, from Rs.1272.08 crore for the previous year.<br />
DIVIDEND<br />
The directors have recommended payment of final dividend of Rs.3.50 per share for the year 2009-10 in addition to interim dividend of<br />
Rs.3.00 per share paid in January, 2010. The total dividend for the year 2009-10 would work out to Rs.6.50 per share, up by 44%, as against<br />
total dividend amount of Rs.4.50 per share paid last year.<br />
RESOURCE MOBILISATION<br />
The Company mobilized Rs.24028.24 crore from the market during the year 2009-10. This includes loans from Commercial Banks, issue of<br />
Capital Gain Tax Exemption Bonds, Non-Priority Sector Bonds and Commercial Paper, Official Development Assistance (ODA) Loan from<br />
Kreditanstat fur Wiederaufbau (KfW), Germany, and Japan International Cooperation Agency (JICA). The domestic debt instruments of the<br />
Company continued to enjoy “AAA” rating- the highest credit rating assigned by CRISIL, CARE, FITCH & ICRA Credit Agencies. The<br />
Company also enjoys International Credit rating equivalent to sovereign rating of India from International Credit Rating Agencies Moody’s<br />
and FITCH which is “Baa3” and “BBB-” respectively.<br />
FINANCING POWER PROJECTS<br />
The Company has been funding power generation, transmission and distribution projects besides electrification of villages and pumpset<br />
energisation. It continued to play an active role in creating new infrastructure and improving the existing ones under the transmission and<br />
distribution network in the country. In line with the country’s objective to provide “power for all” by the year 2012 and also reduce the<br />
AT&C losses, the Company has been laying special thrust in expansion and strengthening of existing transmission network and more<br />
importantly modernising of the distribution system by financing investment in transformers, meters, capacitors etc. and for conversion of<br />
Low Voltage Distribution to High Voltage Distribution System (HVDS).<br />
RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY)<br />
Government of India, in April 2005, launched the scheme ‘Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)–Scheme of <strong>Rural</strong> Electricity<br />
Infrastructure and Household <strong>Electrification</strong>’ for the attainment of the National Common Minimum Programme (NCMP) goal of providing<br />
access to electricity to all households in 5 years. <strong>REC</strong> has been designated as nodal agency for the scheme. Under the scheme 90% capital<br />
subsidy is being provided by Govt. of India for overall cost of the projects. Under this RGGVY programme, cumulatively up to 31.03.2010,<br />
works in 190858 villages (78256 un-electrified and 112602 electrified villages) have been completed and connections to 100.97 Lakh BPL<br />
households have been released. During the year 2009-10, the Company disbursed a total sum of Rs.6583 crore (including Government<br />
Subsidy of Rs.5995 crore).<br />
SUBSIDIARY COMPANIES<br />
The Company had five subsidiary companies as on 31.03.2010 for undertaking specific business activities namely -<br />
1. <strong>REC</strong> Transmission Projects Company Limited (<strong>REC</strong>TPCL);<br />
2. <strong>REC</strong> Power Distribution Company Limited (<strong>REC</strong>PDCL);<br />
3. North Karanpura Transmission Company Limited (NKTCL) -(a wholly owned subsidiary of <strong>REC</strong>TPCL);<br />
4. Talcher II Transmission Company Limited (TTCL) - (a wholly owned subsidiary of <strong>REC</strong>TPCL);<br />
5. Raichur Sholapur Transmission Company Limited (RSTCL) (a wholly owned subsidiary of <strong>REC</strong>TPCL);<br />
Out of the above, two subsidiaries namely NKTCL and TTCL have been transferred to successful bidder M/s Reliance Power Transmission<br />
Limited on 20.05.2010 and 27.04.2010 respectively.<br />
JOINT VENTURE WITH OTHER PSUs.<br />
<strong>REC</strong>, along with three other PSUs namely NTPC, Power Grid <strong>Corporation</strong> <strong>Ltd</strong>. and Power Finance <strong>Corporation</strong> <strong>Ltd</strong>. as partners, has formed<br />
a Joint Venture Company by the name Energy Efficiency Services Limited (EESL). The total equity requirement for EESL is Rs.190 crore to<br />
be shared equally by the four PSUs. The business plan of EESL envisages taking up projects in Energy Conservation and Building Codes,<br />
Agriculture Demand Side Management (DSM), Municipal DSM, Bachat Lamp Yojana besides taking up other activities.<br />
CENTRAL INSTITUTE FOR RURAL ELECTRIFICATION (CIRE)<br />
The Company has established a National Institute in Hyderabad 31 years ago, called CIRE, to cater to the training and development needs<br />
of engineers and managers of Power and Energy Sector and other organisations concerned with Power and Energy. CIRE conducts regular<br />
programmes on various aspects of Transmission and Distribution for national and international Power Sector Executives, as well as inhouse<br />
training programmes for the Company’s employees. In keeping with the needs of the twenty first century, we need to modernise the<br />
CIRE, along with establishment of an ‘Energy Park’ in its premises to give a practical orientation to the training.<br />
HUMAN RESOURCES MANAGEMENT<br />
Training and HRD continued to receive a place of priority as a means of equipping employees with a range of skills including their