• State-owned REC Ltd has partnered with Abdul Latif Jameel Poverty Action Lab (J-PAL) South Asia for an annual data-based assessment of 79 public and private power distribution companies (discoms) in the country to improve service delivery and ensure reliable electricity supply to consumers.

• REC Ltd (formerly Rural Electrification Corporation Limited) is a public infrastructure finance company under the ministry of power. It is a premier financial institution of the country, with the objective of financing schemes for extending and improving the rural electricity infrastructure.

• Through this partnership, REC and J-PAL South Asia aim to provide a transparent and evidence-based channel for discoms to identify gaps in their services as well as ensure a more reliable supply of power to households in line with the Electricity (Rights of Consumers) Rules of 2020. 

• REC and J-PAL South Asia will collaborate to leverage existing data on discoms’ services to diagnose trends and identify gaps in the quality of power supply.

• These datasets will be used to create a consumer service index that will rank companies based on dimensions of service delivery — supply hours, grievance redressal systems, and billing details and timelines, among others.

• REC and J-PAL South Asia will address the challenges faced by discoms that emerge from this yearly assessment as well as pilot and test potential solutions, using randomised evaluations. 

Key points on REC Limited:

• REC Ltd is a Navratna NBFC focusing on power sector financing and development across India. Established in 1969, it has completed over fifty years in the area of its operations.

• It was incorporated as a company under the Companies Act with the main objective of financing rural electrification schemes in the country. The mandate of REC was expanded in 2002 to enable financing all kinds of power projects without any restriction on population, geographical location or size. 

• In 1998, REC was registered as a Non-Banking Financial Company (NBFC) under Section 45 IA of the RBI Act, 1934. 

• REC was conferred with “Navratna Status” in May, 2008.

• It has also been categorised as an Infrastructure Finance Company (IFC) by the Reserve Bank of India in September 2010.

• It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities. 

• Its business activities involve financing projects in the complete power sector value chain. Different types of projects include generation, transmission, distribution projects, and renewable energy projects.

REC has also been appointed as a nodal agency for government’s flagship schemes like: 

• Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA)

• Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

• National Electricity Fund (NEF).

• REC also assists the ministry of power in monitoring the Ujjwal Discom Assurance Yojana (UDAY) and Power for All.

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