The Rural Electrification Corporation (REC), a public sector unit of the government of India involved in financing all segments of the power sector, has announced its 49th annual report for the financial year which ended March 31, 2018.
The total operating income for the financial year 2017-18 declined to ₹223.5827 billion (~$3.15 billion) as compared to ₹235.873 billion (~$ 3.32 billion) during the previous financial year. REC’s profit after tax for financial year (FY) 2017-18 stood at ₹46.47 billion (~$655.01 million).
The company’s gross loan asset as on March 31, 2018 was ₹2,394.4934 billion (~$33.75 billion) as compared to ₹2,019.2867 billion (~$28.46 billion) in the previous year. The outstanding borrowings as on March 31, 2018 stood at ₹1,987.9151 billion (~$28.02 billion).
The net worth of the company as of March 31, 2018 has increased by 6 percent to ₹354.91 billion (~$5.00 billion) from ₹333.26 billion (~$4.70 billion).
The company sanctioned loans worth ₹1,075.3405 billion (~$15.16 billion) during the financial year 2017-18, compared to ₹838.7 billion (~$11.82 billion) in the previous year. The cumulative loans up to March 31, 2018 made by the company since its inception have been recorded to be ₹8,728.841 billion (~$ 123.04 billion).
In June 2018, REC had announced that it plans to increase loan disbursements for the renewable energy sector to 4-5 percent by 2022. In the last financial year, the renewable energy segment received ₹34.18 billion (~$0.51 billion) from the REC, which amounts to only one percent of its total outstanding loan amount of ₹2,390 billion (~$ 35.41 billion) that is available for the sector.
A total sum of ₹617.1247 billion (~$8.70 billion) was disbursed during the FY2017-18 compared to ₹580.3861 billion (~$8.18 billion) in the previous year.
In addition to that, a total subsidy of ₹105.6872 billion (~$1.49 billion) under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and ₹15.40 billion (~$217.16 million) under SAUBHAGYA program was disbursed to states and implementing agencies. The cumulative amount disbursed since inception up to March 31, 2018 was ₹4,492.8949 billion (~$63.33 billion) excluding subsidies under government programs.
During the financial year 2017-18, the company contributed an amount of ₹37.6493 billion (~$530.68 million) compared to ₹40.9779 billion (~$577.60 million) in the previous year, to the national exchequer.
During FY2018, REC became the first PSU to raise $450 million in green bonds on the London Stock Exchange which witnessed a phenomenal response from investors across Asia and Europe with an oversubscription of 6.7 times. The funds were to be utilized to develop solar, wind, and biomass projects, as well as sustainable water and waste management projects.
Earlier, Mercom reported that REC has announced a $1 million (~₹67 million) contribution to the International Solar Alliance (ISA).
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer