Rural Electrification Corporation Ltd., a Navratna Public Sector Undertaking, has been playing a pivotal role in the growth of power sector with special emphasis in the area of rural electrification. REC was incorporated in July 1969 with the main objective of financing rural electrification schemes. The schemes were historically aimed at improving the supply of electricity in rural areas and the energisation of agricultural pump sets.
Over the years, the mandate of REC has evolved in accordance with the development priorities of the GoI, with the result that REC now finances all segments of power sector throughout the country and has emerged as one of the leading public financial institutions in the Indian power infrastructure space.
REC’s principal products are long term loans and short term loans backed by securities in the form of State Government guarantees, mortgage of land, hypothecation of assets etc. REC borrowers include State Sector Power Utilities/SEBs, Central Sector, Joint Sector and Private Sector Power Utilities. REC now competes favourably with all the financial institutions and leverages it pan-India network of 18 project offices and 5 zonal offices for development and conduct of business. REC has been accorded highest safety ratings by CRISIL, FITCH, and CARE. On an international basis, it holds long-term borrowing ratings of “BBB-” and “Baa3” from Fitch and Moody’s, respectively, which are on par with sovereign ratings for India.
REC has also been appointed as a nodal agency for implementation of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) with a mandate to electrify all the villages in the country and also to provide access to electricity to all rural households by the end of 12th plan. Under the Human Resources Development Component of RGGVY, known as National Training Programme. Now, the scheme is changed as Deen Dayal Upadhyaya Gram Jyothi Yojana (DDUGJY). Central Institute for Rural Electrification (CIRE) of REC has been appointed Nodal Agency for coordination and implementation of mega training and capacity building measures for skill development of about 25,000 rural electricity distribution franchisees and 1,25,000 C&D category employees of Distribution Utilities across the country.