REC board to consider raising up to Rs 70K cr via NCDs

Rural Electrification Corporation (REC) today said its board will consider a proposal this month to raise up to Rs 70,000 crore through issuance of non-convertible debentures on private placement basis.

The board of directors of Rural Electrification Corporation in its meeting scheduled on July 25 will "consider a proposal for 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", according to a regulatory filing by the company.

The company would seek shareholders' approval for the proposal in the ensuing Annual General Meeting tentatively scheduled to be held on September 25, the filing said.

The Navratna firm under the power ministry has been appointed as the nodal agency for implementation of Saubhagya (Pradhanmantri Sahaj Bijli Har Ghar Yojana) and DDUGJY (Deendayal Upadhyaya Gram Jyoti Yojana), the schemes which aim at providing 24x7 sustainable and affordable power to all households in the country.

The company has also been entrusted with the responsibility of being the coordinating agency for rolling out UDAY (Ujwal Discom Assurance Yojana) which seeks to operationally reform and financially turnaround the power distribution companies of the country.