Rural Electrification Corporation Limited (REC), a public Infrastructure Finance Company in India’s power sector recently released its annual report for FY 2019-20.
REC is engaged in financing projects / schemes of power generation (both conventional and renewable energy), transmission, distribution, rural electrification and activities having forward / backward linkage with power projects, in both public and private sectors. Its key products include Long Term, Medium Term and Short Terms Loans etc. for the entire power sector value chain.
In addition to that, REC also acts as nodal agency or project management / implementing agency for various schemes and programmes of national importance of the Ministry of Power, Government of India, such DDUGJY, SAUBHAGYA and NEF,to name a few.
During the financial year 2019-20, the Company sanctioned total loan assistance of `1,10,907.99 crore towards various power sector projects/schemes. The same included `55,811.89 crore sanctioned towards generation projects, `7,026.33 crore towards renewable
energy projects, `41,604.77 crore towards T&D projects and `6,465.00 crore towards short term, medium term & other loans.
Further, the Company disbursed a total loan amount of `75,666.95 crore in the financial year 2019-20. The same included `27,490.87 crore towards generation projects, `5,699.09 crore towards renewable energy projects, `30,856.19 crore towards T&D projects, `6,390.00 crore towards short term, medium term & other loans and `5,230.80 crore of counter-part funding
under DDUGJY including DDG (Decentralized Distributed Generation) and SAUBHAGYA schemes. Further, grant/subsidy of `6,473.88 crore provided by the Government of India was also disbursed to various states/implementing agencies during the financial
year 2019-20 under the DDUGJY, DDUGJY-DDG and SAUBHAGYA schemes.
REC’s Total Operating Income for the financial year 2019-20 was `29,791.06 crore, as against `25,309.72 crore during the last financial year. Further, the Profit After Tax and Total Comprehensive Income for the financial year 2019-20 were `4,886.16 crore and
`4,336.37 crore, as compared to `5,763.72 crore and `5,703.18 crore in the last financial year.
The Gross Loan Asset Book of REC as on March 31, 2020 was `3,22,424.68 crore, as compared to `2,81,209.68 crore in the last financial year. The Net Worth of the Company as on March 31, 2020 stood at `35,076.56 crore, i.e., 2.26% higher as compared to
Net Worth of `34,302.94 crore as on March 31, 2019.
The overall weighted average annualized interest rate of borrowing raised during the financial year 2019-20 and for the borrowings outstanding as on March 31, 2020, excluding other finance charges, was 6.70% and 7.32% respectively.
The domestic debt instruments of REC continued to enjoy “AAA” rating, the highest rating assigned by CRISIL, CARE, India Ratings & Research & ICRA. REC also enjoys international credit rating of “Baa3” and “BBB-”, at par with sovereign ratings, from international credit rating agencies viz. Moody’s and FITCH respectively.
REC’s Credit Impaired Assets (Stage III) continue to be at low levels. As on March 31, 2020, the Gross Credit Impaired Assets (Stage III) were `21,255.55 crore, which was 6.59% of the gross loan assets; and the Net Credit Impaired Assets (Stage III) were `10,703.42 crore, i.e., 3.32% of the loan assets.
To know more refer to the report below: