REC to sell 10 per cent equity through IPO

New Delhi, May 4 (UNI) State-owned Rural Electrification Corporation (REC) today said that it would sell 10 per cent of its equity by bringing out an Initial Public Offering (IPO) by December.

Chairman and Managing Director, REC, Anil Kumar Lakhina said that the details fo the IPO is yet to be finalised.

Out of the 110,000 villages in the country, 40,000 is targetted for electrification by REC by March next year.

Fitch Ratings has assigned a stable AAA(ind) national rating to the Rs 12 crore long-term debt programme of REC for 2006-07.

The government has renewed its focus on rural electricity with the Rajiv Gandhi Grameen Vidyutikaran Yojana scheme under which 90 per cent of the cost of projects would be given as grant by the central government.

The budgetary outlay for the scheme has risen 172 per cent to three billion dollar in 2007.

The corporation funds rural electrification projects only.

All government funds to the sector are channelled through REC.

In financial year 2006 loans grew by almost 20 per cent and total assets by 18per cent. Fitch expects RECs profitability to be lower during FY06 due to competition.

UNI RT MP DS1405