The full form of REC is Rural Electrification Corporation. REC Limited, formerly known as Rural Electrification Corporation Limited, is a holding company owned by Power Finance Corporation Limited (PFC), which is in turn owned by India’s Ministry of Power. It supports and finances power plant development all throughout India.
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The PSU offers loans to the nation’s NGOs, State Electricity Boards, Rural Electric Cooperatives, Central/State Sector Power Utilities, and Private Power Developers.
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History of REC
In the midst of India’s dire drought conditions in the late 1960s, REC was founded in July 1969. The company’s first objective focused mostly on assisting State Electricity Boards in re-energizing pump sets across the nation in order to support agriculture and recover from the devastating effects of three years in a row of insufficient monsoons. Additionally, the corporation supplied funding to hasten the pace of rural electrification within the general framework of planned initiatives for enhanced agricultural output. Along with providing financing, REC also provided assistance to State Electricity Boards/Power Utilities, Rural Electric Cooperatives, and other organizations of the same kind with project appraisal, consulting, technical support, and monitoring.
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Objectives of REC
- To support and finance initiatives aimed at power generation, decentralized and unconventional energy source promotion, energy conservation, home renovation, and maintenance, as well as power distribution with a focus on pump set energization and the Deendayal Upadhyaya Gramme Jyoti Yojana, an initiative of the Indian government for the construction of rural electricity infrastructure and household electrification.
- In order to increase the reliability of power supply to rural and urban areas, including remote, hill, desert, tribal, riverine, and other difficult/remote areas, the company will expand and diversify into other related areas and activities, such as financing decentralized power generation projects, using new and renewable energy sources, consultancy services, transmission, sub-transmission and distribution systems, renovation, modernization & maintenance, etc.
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