State-run power financiers Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) will slash rates to single digits when lending to renewable energy projects following the government’s order setting tough targets for the two companies to double their exposure in the next three years. In order to achieve the targets, REC will have to sanction Rs 1 lakh crore loans and PFC Rs 1.5 lakh crore by 2019.
REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them.
