REC to raise Rs 30,000 cr in FY10

State-run Rural Electrification Corporation (REC) mulls raising nearly Rs 30,000 crore this fiscal through issuance of bonds and borrowings from the global markets.     

"The company is planning to raise this sum (Rs 30,000 crore) through a mix of instruments like taxable bonds, international borrowings, follow-on public offer (FPO) and also through banks," Power Ministry sources said.

The state-run firm plans to use the fund to disburse loans for power projects. It expects to sanction Rs 45,000 crore worth loans and disburse about Rs 23,000 crore during the current financial year (2009-10).     

The company is mulling raising Rs 2,900 crore via FPO, which is expected by the end of this fiscal and the Cabinet approval for the same awaited.     

 

REC would issue around 17 crore shares of Rs 10 face value each at a premium to be decided by the company later.     

This amount does not include the capital that REC would raise for the Revised Accelerated Power Development and Reforms Programme (R-APDRP), sources added.     

The objective of R-APDRP is to reduce Aggregate Technical and Commercial losses to 15 per cent and below. It is proposed to cover urban areas — towns and cities with population of more than 30,000.