REC’s board has approved upward revision in Market Borrowing Programme for FY 2019-20 from Rs 90,000 crore to Rs 94,000 crore (i.e. increase of Rs. 4,000 crore in raising funds through Domestic Bonds/Debentures, Rupee Term Loan, ECBs and Capital Gain Tax Exemption Bonds, to be raised during the balance period of the current financial year i.e. FY 2019-20) and also approved a Rs 1.10 lakh crore market borrowing by the company during the next financial year 2020-21.
The company’s board has also approved the launch of Capital Gains Tax Exemption Bonds (Series XIV) 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 Issue will open on April 1, 2020 and close on March 31, 2021. However, the company would have a right to pre-close the issue or extend the same at any time.
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.
