Rural Electrification Corporation (REC) has received an approval to launch Capital Gains Tax Exemption Bonds (Series XIII) under Section 54EC of the Income Tax Act, 1961 for raising of funds on private placement basis for an amount of Rs 2,500 crore with green shoe option to retain over subscription.
The said Bonds are in the nature of secured debentures of face value 10,000/- each. Further, the said Issue will open on April, 2019 and close on 3 March, 2020. However, the company would have a right to pre-close the issue or extend the same at any time. The Board of Directors of the company at their meeting held on February 28, 2019, has approved the same.
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.
