Rec Privately Places On-Tap Bond Issue

The Rural Electrification Corporation (REC), the nodal agency for funding power projects in the rural sector, has launched an on-tap bond issue today through the private placement route.

These are capital gain exemption bonds. This means that if the proceeds arising out of capital gains are invested in these bonds they would qualify for tax exemption under Section 54 EC of the Income Tax Act. The Finance Bill of 2001-02 has paved the way for REC to issue such bonds.

REC