REC Board Approves Borrowing Of Rs 94,000 Crore In FY20, Rs 1.1 Lakh Crore In FY21
State-owned Rural Electrification Corporation Ltd. on Wednesday said its board has approved a proposal to revise its borrowing for the current financial year to Rs 94,000 crore from the Rs 90,000 crore estimated earlier. Besides, the board has also approved a Rs 1.1-lakh crore market borrowing by the company during the next financial year 2020-21.
The board in its meeting on Wednesday approved upward revision in the market borrowing programme for the financial year 2019-20 from Rs 90,000 crore to Rs 94,000 crore, a rise of Rs 4,000 crore in raising funds through domestic bonds, debentures, rupee term-loan, and external commercial borrowing among others, to be raised during the balance period of 2019-20, according to a regulatory filing.
The funds under the market borrowing programme will be raised during the next financial year, with the approval of the competent authority.
The board also approved the launch of Capital Gains Tax Exemption Bonds (Series XIV) under Section 54EC of the Income Tax Act, 1961, for raising funds on a private placement basis for an amount of Rs 2,500 crore with a greenshoe option to retain oversubscription. The said bonds are in the nature of secured debentures of the face value of Rs 10,000 each. The issue will open on April 1, 2020, and close on March 31, 2021.
However, it said the company would have a right to pre-close the issue or extend the same at any time.