RURAL ELECTRIFICATION CORPORATION LTD. - Rural Electrification Corporation Ltd reply to clarification sought by the exchange
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| 25 Mar 2015 | |
| The Exchange had sought clarification from Rural Electrification Corporation Ltd with respect to news appearing in Business Line on March 23, 2015 titled "REC in pact with TS GENCO for Rs. 24,000 cr projects."<BR> <BR>Rural Electrification Corporation Ltd replied stating "We would like to inform you that, Rural Electrification Corporation Limited (REC) is a Public Financial Institution under Section 2(72) of the Companies Act, 2013 and also registered as a NBFC and categorized by RBI as an Infrastructure Finance Company (IFC). The main business of REC is to finance power projects of State power utilities and Private power utilities.<BR><BR>Further, REC from time to time is sanctioning financial assistance to State sector utilities as well as to the Private sector utilities for generation, transmission, distribution and other related projects. During the financial year 2014-15, we have already sanctioned financial assistance of Rs. 57,000 crore (approx.) to various utilities in power sector.<BR><BR>The Memorandum of Understanding signed by REC with TSGENCO was in normal course of our business for extending financial assistance during the 12th five year plan (2012-2017), in accordance with REC policy/guidelines and subject to exposure limit available at the time of sanction of individual project and we do not regard the item that appears in the media as a "material" item considering the main business of REC i.e. financing to the power sector. Therefore, same was not disclosed under Clause 36 of the Listing Agreement." | |
| View all announcements for RURAL ELECTRIFICATION CORPORATION LTD. | Source: BSE India |
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