REC Board Approves Plan To Raise Rs 90,000 Crore Via Debt
Workers connect electricity cables to a transmission pole in the village of Manpur Kulchaura, Uttar Pradesh. (Photographer: Prashanth Vishwanathan/Bloomberg)

REC Board Approves Plan To Raise Rs 90,000 Crore Via Debt

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Rural Electrification Corporation Ltd. said its board has approved a proposal to raise Rs 90,000 crore under different debt segments for the financial year 2019-20.

Approval has been accorded to raise Rs 78,000 crore through instruments such as domestic bonds/debentures, external commercial borrowings and capital gains tax exemption bonds, the company said in a filing.

REC's board also approved raising Rs 12,000 crore through short term loan from banks/foreign investors/non-bank lenders and commercial papers.

The funds under the market borrowing programme will be raised from time to time during 2019-20, with the approval of competent authority as per powers delegated in this regard, by the board of directors.

REC's board also approved incorporation of a project-specific special purpose vehicle, as a wholly owned subsidiary company of REC Transmission Projects Company Ltd. for the construction of 765/400/220 kV gas-insulated substation at Rampur and 400/220/132 kV GIS substation at Sambhal, with associated transmission lines.

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