REC to raise Rs 30,000 crore through issue of debentures

Rural Electrification Corporation (REC) is planning to raise Rs 30,000 crore during the current financial year through issue of debentures. In this regard, the company has already received its board’s approval for the issuance of Non-Convertible Debentures up to Rs 30,000 crore through private placement during the current fiscal 2014-15. The company had targeted to raise Rs 30,000 crore last fiscal, 2013-14. Of that, it raised close to Rs 27,000 crore till December including via Rs 4,500 crore tax-free bond issue. The funds raised through the bond issue are meant for general lending operations of the company and other associated business objectives besides repaying existing loans. REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them.