REC TO PLAY LEADING ROLE IN ENERGISING
RURAL INDIA: POWER MINISTER APPROAVL
FOR IPO SOUGHT
The Minister of Power Shri Suresh Prabhu said here today that
the Rural Electrification Corporation (REC) has to play the role
of a developmental institution as the Government continues its
efforts to electrify all villages in the country. The Minister
was speaking after the launch ceremony to unveil the new logo
of REC. Shri Prabhu said that a Seven Year Plan is being implemented
for rural electrification. Rural electrification has been made
part of the minimum needs programme and funds are available under
the Pradhanmantri Gramodaya Yojana. Under this scheme 50 percent
money is available in the form of grants. Shri Prabhu said in
addition in the 2002-03 budget interest subsidy has also been
provided to States borrowing under this scheme. Money can also
be drawn through the Rural Infrastructure Development Fund (RIDF).
At a recent meeting of 12 States who have fallen behind in their
rural electrification programme a census of un-electrified villages
has been asked for. The Centre is also working with States for
a better definition of electrification. The Ministry of Power
is monitoring progress on a quarterly basis and the next meeting
is scheduled for July. The Minister said he was happy to know
that REC was also working on a scheme for electrification of four
lakh hamlets. In addition discussions are in progress with the
Ministry of Non Conventional Energy Sources to electrify villages,
which cannot be reached through the grid. These villages would
be supplied electricity through renewable energy and the REC will
have a major role, the Minister observed.
Shri Prabhu said the new logo of the REC also reflects the new
approach, which the Government of India sees for public sector
enterprises, which is to allow them to find ways of raising funds
from the market including through equities. REC has sought Government’s
approval to tap the domestic market with an Initial Public Offer
(IPO) to enhance its capital base. At present, REC has a paid
up capital of Rs. 780 crore, wholly subscribed by the Government
of India out of an authorized share capital of Rs. 1200 crore.
REC, which has strong financials and fundamentals and carries
the highest rating of AAA from CRISIL, is seeking to broaden its
equity base to improve its leverage.
Concluding his address as the Chief Guest Shri Prabhu said that
power reforms mean reduced tariff in the long run, improve the
quality of electricity supply, better availability and commercial
viability. All of these guidelines will benefit farmers and rural
areas and therefore, it is a mis-conception to think that power
reforms are anti power and pro-urban in nature.
In his address the Secretary, Power, Shri R.V. Shahi said the
challenging task of electrifying about 80,000 villages in the
country remains a major goal before the Ministry. Shri Shahi said
it was disturbing that some villages, which had earlier been electrified,
have now been de-electrified. The scheme is being worked out with
the Ministries of Rural Development and Non Conventional Energy
Sources to make the process of electrification self-sustaining
by making it a commercial process. PSUs like NTPC and BHEL are
being tapped to work out stable power systems for rural areas.
The Ministry of Power, Shri Shahi said has requested the Ministry
of Heavy Industries and Public Enterprises to confirm Navratna
status to REC.
The Minister of State for Power Smt. Jayawanti Mehta in her message
delivered in absentia conveyed her best wishes to REC and expressed
confidence that it would be able to provide electricity to all
rural areas in the near future.
In his inaugural address the Chairman Cum Managing Director of
REC Shri Dhanendra Kumar said the new logo will replace the logo
which has been in use since 1985. It has been designed by the
National Institute of Design. It symbolizes rural India and REC’s
contribution to its electrification.
REC, which has been in existence since July 1969 and finances
rural electrification schemes, has a net worth of Rs. 2467 crore
as on 31.3.2002. Cumulatively, it has disbursed loan assistance
of Rs. 24,687 crore to State Electricity Boards and other power
utilities.
REC is a healthy and vibrant financial institution with highest
possible rating awarded by leading credit agencies, with market
borrowings of Rs. 3307 crore during 2001-02. it has been accorded
status of Schedule ‘A’ Company and given the award of being one
of the top 10 PSEs in the country by the Vice President of India.
