State-owned REC Ltd will provide finance of Rs 3,045 crore to Bangalore Metro Rail Corporation to develop Phase-II project in Bengaluru.

The project will enhance connectivity and ease traffic in the city.

With completion of Phase-II (72.09 km), the combined network of Bangalore Metro will be 114.39 km, with 101 stations.

REC Limited

• REC Limited (REC) is a Maharatna company under the ministry of power.

• REC is a premier financial institution for development of the power sector in the country, with the objective of financing schemes for extending and improving the rural electricity infrastructure.

• It was established in 1969 as Rural Electrification Corporation Limited with the main objective of financing rural electrification schemes in the country. 

• The mandate/object clause of REC was expanded in the year 2002 to enable financing all kinds of power projects without any restriction on population, geographical location or size. 

• In 2021 the same was further amended for focusing on projects of lift irrigation, smart city and for development of enabling infrastructure including energy conservation, emerging technologies like e-mobilities and associated infrastructure, etc. 

• In 1992, REC was notified as a Public Financial Institution under Section 4A of the Companies Act, 1956 (corresponding Section 2(72) of the Companies Act, 2013). 

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

• REC was granted Miniratna Grade-I Status in 2002 and thereafter conferred with Navratna status in May 2008. In September 2022, it was accorded the status of a ‘Maharatna’ Central Public Sector Enterprise.

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

• As on December 31, 2022 REC has a net worth of Rs 54,840 crore.

Functions of REC

• REC finances projects in the complete power sector value chain, encompassing generation, transmission and distribution segments. It provides financial assistance to state governments, central/state power utilities, independent power producers and private sector utilities, which are critical to the projected addition of installed capacity in the country.

• The corporate office is situated in Gurugram and there are regional offices in 22 states. In addition, REC has a training institute — REC Institute of Power Management & Training (RECIPMT) — in Hyderabad for imparting training to state power utilities.

• REC has been appointed as a nodal agency for government’s flagship schemes liked Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY) and National Electricity Fund (NEF). 

• Further, alongwith Power Finance Corporation, REC has also been designated as nodal agency for Revamped Distribution Sector Scheme (RDSS). Besides, REC assists the ministry of power in monitoring ‘Power For All’.

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