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REC Ltd.

BSE: 532955 | NSE: RECLTD |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE020B01018 | SECTOR: Finance - Term Lending Institutions

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Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Chairman's Speech


Dear Shareholders,

It is my privilege to present the 50th Annual Report of the Company, marking the Golden Jubilee year of REC. Established in 1969 for energization of agricultural pumpsets to support the green revolution of early seventies, REC has come a long way in the service of the nation by supporting electrification of all villages and millions of households in the country. The Company is a premier financial institution financing all needs of the power sector in India across the value chain. As REC completes its 50th year, its Golden Jubilee logo aptly reads as Glorious Past, Inspiring Future, capturing the essence of its journey so far and the path ahead.

In the last five decades, REC has built a strong presence in financing generation, transmission & distribution projects across India, thus evolving as a key player in the country''s power-sector landscape. REC is currently focussing on financing renewable energy projects; and is also supporting various flagship programmes of the Ministry of Power, such as the Deendayal Upadhyaya Gram Jyoti Yojana, Ujwal DISCOM Assurance Yojana and most notably, Pradhan Mantri Sahaj Bijli Har Ghar Yojana or ''Saubhagya'', which has brought electricity in millions of homes of the country for the first time. I hope, with utmost sincerity, that the coming years will see REC scaling greater heights in making India both energy sufficient and energy efficient.


The global economy continues to expand, but the expansion has weakened significantly in the second half of 2018 owing to escalation of US-China trade tensions, disruptions in auto sector in Germany, tighter credit policies in China, weakening financial market sentiment and trade policy uncertainty, alongside normalization of monetary policy in larger advanced economies. The global economy, which a year ago was projected to grow at 3.9% in 2019, is now projected to grow at 3.3% in the current year.

Crude oil prices have also been volatile since last August, reflecting supply influences, including the US policy on Iranian oil exports and more recently, fears of softening global demand. Prices of metals and agricultural commodities have softened slightly since August 2018, in part due to subdued demand from China. Consumer price inflation has generally remained contained in the recent months in the advanced economies, but has inched up in the United States where above-trend growth continues.

In the backdrop of global economic conditions, India continues to be the fastest growing major economy in the world. The Indian economy stands 6th largest in the world, up from 11th position five years ago. In terms of purchasing power parity, India is already the world''s 3rd largest economy, next to China and USA. The IMF, World Bank and RBI have predicted India''s growth forecast for the financial year 2019-20 at 7.3%, 7.5% and 7.0% respectively. Further, Bloomberg has forecasted an expansion of 7.6% for the GDP of India in fiscal 2020. In fact, with the improvement in economic scenario and investments in various sectors, India is expected to become a 5 trillion dollar economy by the year 2024-25.

The global power sector scenario is also undergoing a significant change, with renewables gaining share as the primary source of energy substituting coal, nuclear and hydro power. It is expected that by 2040, the share of renewables would surpass the share of coal in the global energy mix. This would consistently reduce the world''s dependence on fossil fuels. Further, the market share of Electric-vehicles is also growing rapidly. India has the potential to become a hub of manufacturing E-vehicles in the near future, thereby generating employment and growth opportunities.


India is the 3rd largest producer and also 3rd largest consumer of electricity in the world. India is also the fastest growing energy market in the world. As on March 31, 2019, the installed generation capacity of the country stood at 356 GW. The country''s investment in the energy sector grew at a rate of 12% in 2018, which, according to the International Energy Agency, is the highest growth rate compared to any other country. The Renewable Energy potential of India at 900 GW is also huge, which includes 750 GW of Solar Power, 102 GW of Wind Power, 20 GW of Small Hydro Power and 25 GW of Bio-Energy. The Government of India has given priority to the development of Renewable Energy sector through various policies and programmes, including the target of 175 GW of renewable energy capacity by 2022 and plans to shift completely to E-vehicles by 2030.

India''s power sector is one of the most diversified in the world, with power sources ranging from coal, lignite, natural gas, oil, hydro and nuclear power in the conventional energy category, to wind, solar, small hydro, agricultural & domestic waste in the viable non-conventional category. The generation mix of the country is witnessing an increased penetration of renewables. Further, sustained economic growth and the Government''s focus on attaining ''Power for ALL'' are also driving the power demand in the country. In the last few years, the Government has brought in important changes in the policy framework of the power sector, such as issue of draft amendment to the Electricity Act, launch of various consumer-centric initiatives, efforts to turn around debt-ridden DISCOMs and lowering of operational costs of conventional power plants, while trying to achieve the country''s climate change goal of becoming a low carbon economy. The Government''s key initiatives for power sector include ''24X7 Power for AII'' by 2019, DDUGJY, SAUBHAGYA, UDAY, IPDS, Implementation of Outage Management System, 11 kV Rural Feeder Management System, Development of National Power Portal and steps to resolve the Stressed Assets in the sector, to name a few.

One of the major developments in the recent times has been the Government''s universal household electrification programme. In April 2018, the Government achieved 100% electrification of all inhabited census villages in the country. This was followed by 100% electrification of all willing households in all States of the country as on March 31, 2019, except for Chhattisgarh, where also over 99% household electrification has been achieved so far. Another major focus area of the Government is energy efficiency. India could very soon become the world''s first country to use LEDs for all its lighting needs, thereby saving Rs 40,000 crore on an annual basis.

While the present business environment promises a bright future for the power sector, there are also risks and concerns on the horizon such as rising NPAs, prevailing exposure norms, poor financial position of some DISCOMs, limited fuel availability, entry of new players in the market, rising competition from banks & multilateral agencies, fluctuation in rupee and no likely addition of conventional generation capacity in the next five years. General economic conditions may also have a direct bearing on the viability of power projects, which may affect the capacity of the borrowers to service their loans. These risks are being addressed by the Government through various policy changes. REC too, is making its best efforts to foresee, assess and mitigate such risks associated with the business environment in which it operates. The Company is committed to raising of resources at a low cost and ensuring their deployment in avenues offering the best returns, in order to achieve sustainable growth, profitability and the best interest of all stakeholders.


REC is proud to be associated with various flagship programs of the Ministry of Power, Government of India, which are contributing immensely towards the development of the power sector and improvement of economic conditions of the country.

The Hon''ble Prime Minister of India, in his address to the nation on August 15, 2015 i.e., Independence Day, had announced that all 18,452 remaining Un-Electrified (UE) villages in the country would be electrified within 1000 days. The Ministry of Power had fast-tracked the electrification of all UE villages on priority mode; and had assigned the coordination and monitoring of electrification works to REC. To support this initiative, REC had devised a rigorous intensive monitoring mechanism, under which the entire village electrification process was divided into 12 milestones. Further, REC had developed an online web-portal viz. ''GARV App'' for transparent and accountable monitoring of the village electrification works. The Company had also appointed young electrical engineers viz. Gram Vidyut Abhiyantas at block and district level, for successful and fast completion of the assigned task. With closely coordinated and focused efforts, 100% electrification was achieved in all inhabited census villages of the country on the historic day of April 28, 2018.

After village electrification, household electrification became a key focus area of the Government. REC is the Nodal Agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana i.e. ''Saubhagya'' scheme for universal household electrification, launched by the Government in financial year 2017-18 for providing last mile connectivity and electricity connections to all households in rural and urban areas, with free electricity connections to all households in rural areas and poor families in urban areas. As the Nodal Agency, REC is supporting the Ministry of Power, State Governments and the implementing agencies in planning, facilitation, coordination, capacity development, monitoring and reporting etc., to ensure timely completion of the programme. REC has developed a dedicated web portal (Saubhagya) for dissemination of real-time information about the progress of household electrification works. The Company has also deployed Gram Vidyut Abhiyantas at areas where major un-electrified households remain.

Further, REC is the Nodal Agency for Deendayal Upadhyaya Gram Jyoti Yojana i.e., DDUGJY, a flagship scheme of the Government of India launched in financial year 2014-15, covering all aspects of rural power distribution, facilitating towards achievement of ''24x7 Power for AII'' in rural areas of the country through defined project components. REC is also supporting the Ministry of Power for implementation of Ujwal DISCOM Assurance Yojana i.e., UDAY scheme launched in financial year 2015-16 for financial turnaround and revival of Power DISCOMs in the country. REC has developed a state-of-the-art web portal and an online App for monitoring the performance of DISCOMs, which has resulted in transparency and accountability. Further, REC has been coordinating various review meetings etc. with each State/DISCOM. With the implementation of UDAY, significant positive results have started to emerge for DISCOMs of the country.


REC is engaged in the financing of projects & schemes of power generation (conventional and renewable energy), transmission & distribution, rural electrification, system improvement, renovation and modernization of power plants etc. in both public and private sectors. REC''s key products include Long Term Loans, Medium Term Loans, Short Terms Loans etc. for the entire power sector value chain. In addition, REC also acts as Nodal Agency or supports the Ministry of Power in various flagship Government schemes for the power sector, such as DDUGJY, SAUBHAGYA, UDAY etc.

During the financial year 2018-19, the Company sanctioned a total loan assistance of Rs 115,957.35 crore towards various power sector projects/schemes, which was 7.83% higher than the previous year. The same included Rs 41,431.87 crore towards Conventional Generation projects, Rs 11,875.20 crore towards Renewable Energy projects, Rs 50,610.28 crore towards T&D projects and Rs 12,040 crore towards Short Term Loans & Other Loans. It is pertinent to mention that REC''s sanctions under the Renewable Energy category were 69% higher than the previous year. A total of 36 Renewable Energy projects were sanctioned during the year, which included 12 solar photo-voltaic projects, 13 wind energy projects, 2 small hydro projects, 1 solar pumpset project consisting of 6,583 No. of pumpsets, 1 solar PV roof-top project, 1 Electric-vehicle project and 6 loans to State DISCOMs for meeting their renewable purchase obligations.

Further, the Company disbursed Rs 72,165.43 crore in the financial year 2018-19, which was 16.94% higher than the previous year. The same included Rs 19,581.64 crore towards Conventional Generation projects, Rs 6,627.76 crore towards Renewable Energy projects, Rs 31,364.41 crore towards T&D projects, Rs 8,870 crore towards Short Term & Other Loans and Rs 5,721.62 crore towards the loan component of various DDUGJY schemes, including Decentralized Distributed Generation (DDG). In addition, grant/subsidy of Rs 19,662.13 crore was released to various States/implementing agencies during the financial year 2018-19 under the DDUGJY, SAUBHAGYA and DDG schemes of the Government of India.


For the financial year 2018-19, REC''s Total Operating Income was Rs 25,309.72 crore, which was 12.71% higher than the previous year. Further, the Profit After Tax and Total Comprehensive Income for the year were Rs 5,763.72 crore and Rs 5,703.18 crore respectively, registering a growth of 30.40% and 28.91% over the previous year.

REC''s Gross Loan Asset Book as on March 31, 2019 stood at Rs 2,81,209.68 crore and its outstanding borrowings as on the said date were Rs 2,39,286.45 crore. The Net Worth of REC as on March 31, 2019 was 6% higher than the last year, at Rs 34,302.94 crore. REC''s overall weighted average annualized interest rate of borrowings was 7.96% for the funds raised during financial year 2018-19; and 7.76% for the borrowings outstanding as on March 31, 2019. As a result, REC was able to deliver financial assistance at competitive rates.

The domestic debt instruments of REC are rated as AAA, the highest rating assigned by CRISIL, CARE, India Ratings & Research and ICRA. Further, REC''s international credit ratings from Moody''s and FITCH are Baa3 and BBB- respectively.

The Company''s Credit Impaired Assets (NPAs-Stage III) continue to be at low levels. As on March 31, 2019, the Gross Credit Impaired Assets were Rs 20,349 crore, i.e., 7.24% of the Gross Loan Assets; and the Net Credit Impaired Assets (NPAs-Stage III) were Rs10,650 crore, i.e., 3.79% of the Net Loan Assets. REC continues to take various measures to maintain the quality of its assets and minimize its NPAs.


The Board of Directors of REC had declared an interim dividend of Rs 11/- per equity share of Rs 10/- each for the financial year2018-19, which was paid in March, 2019. The Board has not recommended any final dividend for the year.

Thus, the total dividend for the financial year 2018-19 works out to Rs 11/- per equity share of Rs 10/- each, representing 110% of the paid-up equity share capital of the Company, as against the total dividend of Rs 9.15 per equity share of Rs 10/- each paid last year, representing 91.50% of the paid-up equity share capital.


As on March 31, 2019, the Authorized Share Capital of the Company was Rs 5,000 crore consisting of 500,00,00,000 equity shares of Rs 10/- each; and the Issued & Paid up Share Capital of the Company was Rs 1,974.92 crore consisting of 197,49,18,000 equity shares of Rs10/-each.

At the beginning of the financial year 2018-19, the President of India held 58.32% equity stake in the Company comprising of 1,15,16,78,783 equity shares of Rs10/-each. During the year, the President of India acting through the Ministry of Power, Government of India divested/sold 64,73,244 equity shares (0.33% equity stake) in June 2018 through an off-market sale of shares under Bharat 22 Exchange Traded Fund, followed by another divestment/sale of 10,14,70,139 equity shares (5.14% equity stake) in December 2018 under the 3rd Further Fund Offer of CPSE ETF Mutual Fund Scheme; and another divestment/sale of 43,36,057 equity shares (0.22% equity stake) in February 2019 to ICICI Prudential Asset Management Company Limited, i.e., the Asset Management Company of Bharat 22 ETF Scheme. As a result, the President of India''s equity stake in REC was reduced to 52.63% as on February 21, 2019.

Further, in line with the in-principle approval of the Cabinet Committee on Economic Affairs on December 6, 2018 and subsequently, in terms of the Share Purchase Agreement dated March 20, 2019 entered into between the President of India, acting through the Ministry of Power, Government of India and Power Finance Corporation Limited (PFC), a Government Company, the President of India divested/sold its entire equity stake of 52.63% in REC comprising of 1,03,93,99,343 equity shares of face value of Rs 10/- each to PFC on March 28, 2019.


During the financial year 2018-19, the name of the Company was changed from Rural Electrification Corporation Limited to REC Limited. This was done to reflect the remarkable presence of the Company under the well-recognized name of REC / RECL in financing all segments of the Indian Power Sector i.e., generation, transmission, distribution, renewable energy etc., as against the earlier name, which implied the Company''s presence in only rural electrification activities. The fresh certificate of incorporation in this regard was issued by the Registrar of Companies on October 13, 2018.


The Company regularly adopts or amends its policy framework from time to time, to meet its corporate objectives and to align with market trends and statutory requirements. During the financial year 2018-19, REC adopted / amended various policies including the Policy for Interest Rate Reduction for Conventional Private Sector Borrowers for generation projects; Policy for Renewable Energy Loans; Integrated Rating Guidelines for Entity & Project Appraisal of private sector power projects; Policy for financing of Inter-State Transmission projects in private sector awarded through Tariff Based Competitive Bidding route; Policy on the forms of equity instruments for infusion of promoters'' contribution of equity for funding of all categories of power projects; revision in loan sanctioning limits under the Delegation of Powers; modification in the Company''s Comprehensive Risk Management Policy and Policy for payment of nominal fee to related party(ies), towards administrative expenses in related party assignments.

Despite the growing competition and dynamic market trends, REC has been able to maintain healthy spreads, thereby achieving the objectives of sustainable growth and profitability.


REC''s human resources continue to play a significant role in the journey of this organization of 50 years and beyond. On one hand, the Company focuses on training, capacity building and effective deployment of its human resources for meeting the organizational goals; and on the other hand it strives to create an atmosphere of nurturing and care for the well-being of all its employees, by adopting various welfare-oriented policies. We are proud of our dedicated workforce and their collective contribution towards the success of this organization.


REC gives utmost importance to the use of Information Technology for automation and enhancement of its business operations. Last year, REC became the first CPSE in the country to go paperless, by introducing ''E-office'' system in all its offices and subsidiaries. The Company also carried out a comprehensive upgrade of its Business ERP, on which the core business functions run. REC already provides the facility of an online portal to its borrowers for directly submitting loan applications from the public domain. Video conferencing is also extensively used in the Company at various locations, for conduct of review meetings, management meetings, Board Meetings, conferences, interviews, training sessions etc. The Corporate Website and Intranet portals of the Company were also revamped during the year, in order to make them more user-friendly, dynamic and interactive.

Information and data security continue to be key areas of importance for REC. The Company has complied with the IT Security framework prescribed by RBI under the Master Direction of IT Framework for NBFCs. The Primary Data Centre and Disaster Recovery Center of REC are ISO/IEC 27001:2013 certified and comply with the Government''s National Cyber Security Policy. REC has also implemented Data Leakage & Prevention system for preventing sharing of confidential and critical information outside its corporate network.


The Company has a training institute at Hyderabad, namely, REC Institute of Power Management and Training (RECIPMT) which conducts specialized training programs relevant to the power sector. The trainings are imparted to engineers, managers and other staff from various organizations in India and abroad, besides in-house training sessions for the employees of REC. The training topics range from power generation, transmission & distribution, renewable energy, appraisal of power sector projects, etc. to general management, finance, tax and behavioral skills. During the year 2018-19, RECIPMT conducted 255 programmes on various topics and trained 7,397 personnel with 24,821 man-days of training. RECIPMT also coordinated and monitored National Training Programmes for employees of C&D category, sponsored by the Ministry of Power, Government of India.


REC''s CSR and Sustainable Development initiatives are pursued with a key focus on addressing community, societal and environmental concerns, while co-creating value with local institutions and people. The Company''s CSR funds are channelized through ''REC Foundation'', a society registered under the Societies Registration Act, 1860. REC Foundation has been recently strengthened with additional manpower and resources for effective management of REC''s CSR initiatives. During the financial year 2018-19, the Company sanctioned a total amount of Rs 158.72 crore towards various CSR projects in the fields of health care, drinking water and sanitation, skill development, education, environmental sustainability, rural development and community development. The implementation of CSR projects is done in project-mode with baseline survey, specified time-frame, identified milestones, periodic monitoring and impact assessment. The disbursement towards CSR projects is linked with the achievement of pre-defined milestones and deliverables. During the financial year 2018-19, the Company disbursed a total amount of Rs 103.39 crore towards various CSR projects.

The Company also observed Swachhta Pakhwada during the year, where employees at all office locations undertook special cleanliness drive. Further, the Company organized various Nukkad Nataks, interactive sessions etc. for its employees and the general public, for creating awareness about hygiene, sanitation and waste management.


REC is committed to the highest standards of Corporate Governance. We strive to conduct the business operations in an ethical and responsible manner, within the prevalent regulatory framework, for sustainable value creation for all our stakeholders. As a listed Public-Sector Enterprise, REC complies with all applicable provisions relating to Corporate Governance stipulated under the Companies Act, SEBI (Listing Obligations & Disclosure Requirements) Regulations, DPE Guidelines and other laws.

During the year under review, REC received the prestigious Golden Peacock Award 2018 for Excellence in Corporate Governance conferred by the Institute of Directors, at a ceremony held in London.


The performance of the Company in terms of MoU signed with the Ministry of Power for the financial year 2017-18 has been rated as Very Good. Further, during the year 2018-19, REC has received various awards and recognitions at several prestigious forums including Dalai Street Investment Journal Award for Highest Employee Efficiency Enterprise, Golden Peacock Award 2018 for Corporate Governance, CIMSME Banking Excellence Award, Dun & Bradstreet PSU Award 2018 for Financial Services, Award for Best PSU Issuer on Electronic Bidding Platform of NSE and India Smart Grid Forum Innovation Award 2019 for Best Household Electrification Programme (Saubhagya).


The Company has two wholly-owned subsidiaries, namely REC Transmission Projects Company Limited (RECTPCL) and REC Power Distribution Company Limited (RECPDCL), which provide consultancy services in the areas of transmission & distribution, bid process coordination, transaction advisory services, project implementation and project monitoring etc.

RECTPCL acts as the Bid Process Coordinator, for selection of Transmission Service Providers through Tariff Based Competitive Bidding process for independent inter-state and intra-state transmission projects, assigned by the Ministry of Power and State Governments from time to time. For each such project, RECTPCL establishes a project specific Special Purpose Vehicle, which is later transferred alongwith all assets & liabilities to the successful bidder. RECTPCL is also handling other assignments under the guidance of the Ministry of Power, such as Outage Management System, 11 kV Rural Feeder Monitoring Scheme and Tarang i.e., Transmission App for Real Time Monitoring & Growth. During the financial year 2018-19, RECTPCL''s Total Revenue and Profit After Tax were Rs 40.45 crore and Rs 24.60 crore respectively; and its Net Worth as on March 31, 2019 was Rs 118.44 crore.

RECPDCL''s core business includes preparation of detailed project reports, third party inspection, material inspection and project management consultancy etc. As on March 31, 2019, RECPDCL was working on 96 on-going projects spread in 46 DISCOMs/ Power Departments/Co-operative Societies across 27 States and 4 Union Territories of the country, with estimated aggregate project cost of over Rs 80,000 crore. During the financial year 2018-19, RECPDCL''s Total Revenue and Profit After Tax were Rs 159.77 crore and Rs 26.34 crore respectively; and its Net Worth as on March 31, 2019 was Rs 155.73 crore.

REC also has a joint venture company namely Energy Efficiency Services Limited (EESL), which is a market leader in the field of energy efficiency. EESL was formed in 2009 alongwith three other power sector PSUs; and REC''s equity stake in the same was 21.7% as on March 31, 2019. EESL is a Super Energy Service Company and is also leading the market-related activities of National Mission for Enhanced Energy Efficiency (NMEEE). Further, EESL is implementing the world''s largest non-subsidy-based LED lighting programme i.e. UJALA, for distribution of LED bulbs, LED tube lights and energy-efficient fans to domestic consumers. EESL''s energy efficient appliances and technologies have saved over 50 billion kilowatt hours of estimated energy for the country annually. During the financial year 2018-19, EESL earned a revenue of Rs1,936 crore and its net profit was Rs 95 crore, on a standalone basis.


India''s power sector is experiencing a considerable reformation, that has redefined the industry outlook. The Government''s proactive efforts suggest impending transition from a fossil-fuel centric system to a more renewable-centric and energy efficient paradigm. The Government has already affirmed its commitment to implementation of the covenants of Paris Agreement and has set a target of 175 GW of renewable energy by 2022. The Sector is also looking forward to the increase in the share of green energy to 40% of the total installed capacity by 2030, push for Electric Mobility, promotion of energy saving devices and adoption of new & emerging energy technologies. Further, India''s persistent economic and agricultural growth are driving the country''s electricity demand, which should lead to significant investments in the power sector in the coming years.

In addition, the Ministry of Power, Government of India has launched several programmes to transform its vision of''24X7 Power for AII'' into reality. Incredible work has been done towards achieving 100% electrification of all villages and households in the country. In fact, successful implementation of Saubhagya, with access of electricity in every household, will create huge latent demand for power in the near future.

The increase in power demand will also require robustness in the Transmission & Distribution infrastructure, thereby attracting more investment in underground cabling, smart meters & equipment, AMI /AMR infrastructure and Smart Grid etc., to cater to 24X7 power demand of all consumers. Further, the investment needs for creation of dedicated Green Corridors and new network under the Tariff Based Competitive Bidding route are enormous.

REC offers a wide range of products to finance the diverse needs of the power sector, across the value-chain and throughout the country. With a strong foothold in its present area of operations, REC is poised to enter into new areas of business, such as financing of power equipment manufacturing, debt syndication, fee-based project appraisal for other financial institutions, line of credit for large Renewable Energy projects and storage & charging infrastructure. The Company is committed to harness the emerging business opportunities in the best interests of all its stakeholders.


Financing of Renewable Energy projects is going to be a key focus area of REC over the next few years. The Company''s Green Energy portfolio is consistently growing in terms of both quantity and quality; and is expected to get a further boost with various policy initiatives of the Government, such as the newly announced Hydro Policy, KUSUM scheme, Solar Roof-top programme etc.

Many new avenues of investment are also likely to open up for the Company with the advent of technologies and regulations like smart equipment/meters, E-vehicles, emission control equipment, energy efficient equipment, smart transmission and distribution systems, IT enablement/digitization and installation of pollution control equipment in thermal power plants. Further, the upcoming technology of Energy Storage solutions could also be a turning point for electrification of various basic requirements like cooking, transportation etc.; thus increasing the sectoral market size. Access of electricity to 100% households will also act as a major demand driver.

It is evident that the emerging power ecosystem holds a great potential for REC. The Company is looking to diversify into these areas not just as a funding partner, but also as an implementer or owner of such products / services through its subsidiaries in the impending future. REC is building close professional partnerships with national and international financial institutions and multilateral development organisations such as KfW, World Bank, Asian Development Bank, International Finance Corporation etc., to raise resources at competitive rates and to adopt global best practices. In the coming years, REC will remain at the forefront of the power sector development in the country and beyond.


I take this opportunity to express my sincere gratitude to the Hon''ble Minister of State (Independent Charge) for Power and New & Renewable Energy, the Secretary (Power), Additional Secretaries, Joint Secretaries and other Officials of the Ministry of Power, for their continued support and guidance to the Company. I also thank the officials of NITI Aayog, Ministry of Finance, Ministry of Corporate Affairs, Department of Investment and Public Asset Management, Department of Public Enterprises, Reserve Bank of India, Securities and Exchange Board of India, the Stock Exchanges and the Depositories for their cooperation. I am also grateful to the Comptroller and Auditor General of India, Statutory Auditors, Secretarial Auditors, Registrars and other professionals associated with the Company for their valued contribution. Above all, I wish to thank our investors, lenders and borrowers including State Governments, power utilities and private sector entrepreneurs, for reposing their trust in REC.

I am also grateful to my colleagues on the Board of Directors, for their contribution towards steering the Company on a path of sustainable growth. I am immensely thankful to REC''s employees for their untiring efforts in the service of the organization.

Last, but not the least, I convey my heartfelt thanks to all Stakeholders of REC. It is your support and goodwill, which allows us to thrive and grow.

With warm wishes,


Ajeet Kumar Agarwal

CMD and Director (Finance)

(DIN: 02231613)

July 22, 2019