REC board approves plan to raise Rs 70k cr via debt

Rural Electrification Ltd (REC) today said its board has approved proposal to raise up to Rs 70,000 crore through debt instruments on private placement basis.

"Board of directors of REC in its meeting held on July 25, 2018, approved...raising of funds through issue of unsecured/ secured non-convertible bonds/debentures through private placement, up to an amount of Rs 70,000 crore, in one or more tranches, subject to approval of shareholders," the company said in a BSE filing.

The funds will actually be raised, from time to time, during a period of one year from the date of passing of resolution by the shareholders in the 49th annual general meeting, the filing said.

The board also approved "incorporation of a project specific SPV, as wholly owned subsidiary of RECTPCL for intra-state transmission work associated with construction of 400 kV Substation near Guna and intra-state transmission work associated with construction of 220 kV substation near Bhind".

The company has been appointed as the nodal agency by the government for implementation of Saubhagya (Pradhanmantri Sahaj Bijli Har Ghar Yojana) and DDUGJY (Deendayal Upadhyaya Gram Jyoti Yojana) to provide round the clock sustainable and affordable power to all households in the country.