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Rural Electrification Corporation Ltd. Company History and Annual Growth Details

Our Company was incorporated on July 25, 1969
under the Companies Act as a private limited company
under the name of 'Rural Electrification Corporation
Private Limited' with the main objective of financing rural
electrification schemes in the country. The word private
was deleted from the name of our Company on June 3, 1970.
Our Company became a deemed public limited company
w.e.f. July 1, 1975. The RoC on July 18, 2003 issued a
fresh certificate of incorporation consequent upon change
of name on conversion to a public limited company and our
name was changed to our present name, Rural Electrification
Corporation Limited.
Major events

Our Company was declared a Public Financial Institution
under section 4A of the Companies Act in 1992. We are also
registered with the RBI as a NBFC w.e.f. February 10, 1998.

1969 Incorporation of our Company.

1970 Commenced lending operations to SEBs.

1974 Authorised by the Ministry of Irrigation and Power
to finance rural electrification under the 'Minimum Needs

1979 Central Institute of Rural Electrification set
up in Hyderabad.

1980 Deputed engineers to Algeria to train the Algeria's
National Agency for Distribution of Electricity
and Gas on rural electrification.

1988 Launch of Kutir Jyoti and Jal Dhara programmes for
rural electrification.

1990 Awarded the Indira Gandhi Memorial Award for
Excellence in Public Sector Undertakings for
the year 1989-1990.

1992 Declared a Public Financial Institution under
section 4A of the Companies Act.

1993 Entered into MOU with the MoP for the first time
to achieve certain performance related targets.

1994 Received rating of 'excellent' and award by the GoI,
for the first time, for fulfilling the targets
pursuant to the MOU.

1998 Registered as a NBFC under section 45(IA) of the
RBI Act.

1999 Received 'AAA' rating from CRISIL Limited in relation
to our long term domestic borrowings.

2000 Declared to be among the top ten Public Sector
Enterprises by the GoI.

2001 Capital Gains Tax Benefit under section 54 EC of
the IT Act to bonds floated by our Company.
Upgradatation from Schedule 'B' to Schedule 'A' Corporation.

2002 Grant of Mini Ratna- I status.

2003 Did not seek assistance from the budget for finances
and became a fully self- reliant organisation.

2005 Profit before tax, crossed Rs. 10,000 million.
Paid Rs. 2,345 million as dividend to the GoI.
Appointed as the nodal agency for RGGVY.

2006 Received rating of 'excellent' for the year 2005-06
by the GoI for fulfilling the targets of the MOU.

2007 Received rating of 'excellent' for the year 2006-07
by the GoI for fulfilling the targets of the MOU.


-The initial public offer of Rural Electrification Corporation (REC), a state-run power sector lender, got subscribed 4.67 times at 11:00 IST on last day of its issue today, 22 February 2008. The price band for the IPO is Rs 90 to Rs 105. The book building process, which opened on February 19, is scheduled to close on February 22. The issue would constitute about 18.18% of the fully diluted post-issue capital of REC. It is looking to raise about Rs 16.40 billion through sale of 156 million equity shares in a price band of Rs 90-105 in the IPO.


- Rural Electrification Corporation Ltd has appointed the following two firms of Chartered Accountants as the Joint Statutory Auditors of the Company for the Financial Year 2009-10:
1. Bansal & Co., New Delhi
2. K G Somani & Co., New Delhi


- In order to fund a power project in North Chennai, Rural Electrification Corporation Ltd. (REC) has inked a Memorandum of Understanding (MoU) with NTPC Tamil Nadu Energy Company Ltd. (NTECL)
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