you are here:

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

BSE Live

Aug 03, 15:31
155.00 -1.65 (-1.05%)
Volume
AVERAGE VOLUME
5-Day
422,529
10-Day
329,440
30-Day
286,196
136,853
  • Prev. Close

    156.65

  • Open Price

    157.45

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Aug 03, 15:31
155.50 -1.15 (-0.73%)
Volume
AVERAGE VOLUME
5-Day
4,943,819
10-Day
3,934,546
30-Day
4,282,374
2,600,426
  • Prev. Close

    156.65

  • Open Price

    157.30

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Director’s Report

BOARD'S REPORT

To

The Shareholders,

Your Directors have pleasure in presenting the Fiftieth Annual Report together with the Audited Financial Statements of your Company for the financial year ended March 31, 2019.

1. PERFORMANCE HIGHLIGHTS

1.1 The highlights of performance of the Company for the financial year 2018-19 were as under with comparative position of previous year's performance:

(Rs in crore)

Parameter

FY 2018-19

FY 2017-18

Loans Sanctioned

1,15,957.35

1,07,534.05

Disbursements

72,165.43

61,712.47

Subsidy under DDUGJY (including DDG) & Saubhagya

19,662.13

10,568.72

Recoveries (including interest)

55,093.20

46,351.13

Total Operating Income

25,309.72

22,454.62

Profit Before Tax

8,100.50

5,884.15

Prof it After Tax

5,763.72

4,419.89

Total Comprehensive Income

5,703.18

4,424.13

1.2 Financial Performance

The total operating income of your Company for the financial year 2018-19 was Rs 25,309.72 crore as compared to Rs 22,454.62 crore during the financial year 2017-18. The profit aftertax and total comprehensive income for financial year 2018-19 was Rs 5,763.72 crore and Rs 5,703.18 crore, respectively as compared to Rs 4,419.89 crore and Rs 4,424.13 crore for the financial year 2017-18.

Gross Loan asset book of your Company as on March 31, 2019 was Rs 2,81,209.68 crore as compared to Rs 2,39,449.34 crore in the previous year. The outstanding borrowings as on March 31, 2019 was Rs 2,39,286.45 crore.

Earnings Per Share (EPS) for the financial year ended March 31, 2019 was Rs 29.18 per share of Rs 10/-each. Net worth of the Company as on March 31, 2019 has increased by 6% to Rs 34,302.94 crore from Rs 32,303.15 crore.

1.3 Dividend

The Board of Directors of your Company has declared an interim dividend of Rs 11.00 per equity share of Rs 10/- each for the financial year 2018-19 and the same was paid on March 19, 2019. The Board of Directors has not recommended any final dividend for the financial year 2018-19.

Therefore, the total dividend for the financial year 2018-19 will be Rs 11.00 per equity share, representing 110% of the paid-up share capital of the Company as against Rs 9.15 per share, representing 91.50% of the paid-up share capital of the Company in the previous year. The total dividend pay-out for the financial year 2018-19 amounted to Rs 2,172.41 crore (excluding dividend distribution tax).

1.4 Share Capital

As on March 31, 2019, the Authorized Share Capital of the Company was Rs 5,000 crore consisting of 500 crore 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 Rs 10/- each.

As on March 31, 2018, the President of India held 1,5,16,78,783 equity shares i.e. 58.32% of the paid up equity share capital of the Company.

During the financial year 2018-19, the President of India acting through Ministry of Power, Government of India divested/sold 64,73,244 equity shares i.e. 0.33% of total paid up capital of the Company on June 18, 2018 through off market sale of shares under 'Bharat 22 Exchange Traded Fund'. The President of India on December 4, 2018, further divested/sold 10,14,70,139 equity shares i.e. 5.14% of total paid up capital of the Company through off market sale under third Further Fund Offer (FFO 3) of CPSE ETF Mutual Fund Scheme.

The President of India on February 21, 2019, further divested/sold 43,36,057 equity shares of face value Rs 10/- each i.e. 0.22% of total paid up capital of the Company to ICICI Prudential Asset Management Company Limited, the Asset Management Company of Bharat 22 ETF Scheme and the holding of President of India was reduced to 52.63% of the paid up equity share capital of the Company.

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

1.5 Change of Name of the Company

Your Company was well recognized across the industry and market, in India and abroad with abbreviated names like REC orRECL and has also become a brand name. To correctly display the remarkable presence of your Company in financing all segments of Indian Power Sector viz. generation, transmission, distribution, renewable energy, etc. and to remove the myth that the Company is mainly into the business of rural electrification, the name of the Company was changed from Rural Electrification Corporation Limited to REC Limited. Afresh certificate of incorporation dated October 13, 2018, was issued by the Registrar of the Company after the name change and after all applicable statutory approvals.

2. LOANS SANCTIONED

The Company sanctioned loans worth Rs 1,15,957.35 crore during the financial year 2018-19, as against Rs 1,07,534.05 crore in the previous year. The state-wise and category-wise break-up of loans sanctioned during the financial year are given in Table-1 and Table-2, respectively. The cumulative sanctions upto March 31, 2019 made by your Company since its inception was Rs 9,88,841.46 crore, as detailed in Table-3.

3. DISBURSEMENTS

A total sum of Rs 72,165.43 crore was disbursed during the financial year 2018-19 as against Rs 61,712.47 crore in the previous year. In addition to that, grant/subsidy of Rs 19,662.13 crore {Rs16,953.30 crore (including Rs 140.97 crore under DDG) under DDUGJY and Rs 2,708.83 crore under Saubhagya scheme} provided by Government of India, was disbursed to the States/ Implementing Agencies. The cumulative amount disbursed since inception up to March 31, 2019 was Rs 5,21,454.92 crore excluding subsidy under DDUGJY-RE, DDG and SAUBHAGYA. The state-wise disbursements and repayment of loan by borrowers during the financial year 2018-19 together with cumulative figures and outstanding as on March 31, 2019 are given in Table-4.

4. RECOVERIES

4.1 The Company gives utmost priority to the timely realization of its dues towards principal, interest, etc. The amount due for recovery including interest for Standard Assets (Stage I & II) during the financial year 2018-19 was Rs 55,155 crore as compared to Rs 46,236 crore during the previous year. The Company recovered a total sum of Rs 54,502 crore towards Standard Assets (Stage I & II) during the financial year 2018-19 as against Rs 45,566 crore during the previous year. The Company achieved recovery rate of 98.82% for the financial year 2018-19. The overdues from defaulting borrowers pertaining to Standard Assets (Stage I & II) as on March 31, 2019 was Rs 2,413 crore. Further, an amount of Rs 591 crore has been recovered from Credit Impaired Assets (NPAs) (Stage III) during financial year 2018-19 as compared to Rs 785 crore recovered during financial year 2017-18.

4.2 Your Company's Credit Impaired Assets (NPAs) (Stage III) continue to be at low levels. As on March 31, 2019, the gross Credit Impaired Assets (NPAs) (Stage III) was Rs 20,349 crore, which was 7.24% of Gross Loan Assets and the net Credit Impaired Assets (NPAs) (Stage III) was Rs 10,650 crore, which was 3.79% of Net Loan Assets.

5. FINANCIAL REVIEW

5.1 Summary of Financial Results

The summary of audited financial results of the Company for the financial year 2018-19 vis-a-vis 2017-18 is given as under:

(Rs in crore)

[Particulars

Standalone

Consolidated

FY 2018-19

FY 2017-18

FY 2018-19

FY 2017-18

Revenue from Operations

25,309.72

22,454.62

25,399.02

22,651.60

Other Income

31.44

12.73

32.31

14.79

Total Income

25,341.16

22,467.35

25,431.33

22,666.39

Finance Costs

15,641.54

13,337.11

15,639.20

13,332.94

Net translation/transaction exchange loss

521.19

19.37

521.19

19.37

Fees and Commission Expense

34.38

24.58

34.38

24.58

Net loss on fair value changes

348.52

573.37

348.52

573.37

Impairment on financial instruments

240.33

2,297.12

243.49

2,300.53

Other Expenses

454.70

331.65

564.06

468.75

Total Expenses

17,240.66

16,583.20

17,350.84

16,719.54

Share of Profit/Loss of Joint Venture accounted for using equity method

-

-

9.95

10.67

Profit Before Tax

8,100.50

5,884.15

8,090.44

5,957.52

Tax Expenses

2,336.78

1,464.26

2,349.06

1,507.00

Profit After Tax

5,763.72

4,419.89

5,741.38

4,450.52

Other Comprehensive Income for the period

(60.54)

4.24

(60.59)

5.67

Total Comprehensive Income

5,703.18

4,424.13

5,680.79

4,456.19

Add: Opening Balance of Retained Earnings and Other Comprehensive Income

5,304.75

5,878.17

5,536.07

6,082.70

Amount available for appropriation

11,007.93

10,302.30

11,216.86

10,538.89

Less : Appropriation

 

 

 

 

Special Reserve created u/s 36(1)(viii) of the Income Tax Act, 1961

(1,323.59)

(1,582.49)

(1,323.59)

(1,582.49)

Reserve for Bad and Doubtful Debts u/s 36(1)(viia) of the Income Tax Act, 1961

(273.62)

(335.80)

(273.62)

(335.80)

Reserve Fund u/s 45-IC of Reserve Bank of India Act, 1934

(1,153.00)

-

(1,153.00)

-

Debenture Redemption Reserve

(196.59)

(196.59)

(196.59)

(196.59)

General Reserve

-

(500.00)

-

(500.00)

Dividend

(2,518.02)

(1,984.79)

(2,518.02)

(1,984.79)

Dividend Distribution Tax

(506.84)

(397.88)

(525.51)

(403.15)

Closing Balance of Retained Earnings and Other Comprehensive Income

5,036.27

5,304.75

5,226.53

5,536.07

5.2 Contribution to National Exchequer

During the financial year 2018-19, your Company contributed an amount of Rs 3,767.78 crore as compared to Rs 3,764.93 crore in the previous year to National Exchequer, as detailed below:

(Rs in crore)

Particulars

FY 2018-19

FY 2017-18

Dividend paid to the Government of India

1,343.75

1,160.30

Dividend Distribution Tax

506.84

397.88

Direct Taxes

2,043.13

2,166.70

IGST and CGST

74.47

23.50

Service Tax paid including CENVAT credit

-

16.55

Total

3,767.78

3,764.93

5.3 Ratio Analysis

A comparative statement of important ratios of the Company for the financial year 2018-19 vis-a-vis 2017-18 is as below:

Particulars

FY 2018-19

FY 2017-18

Earnings Per Share (Rs)

29.18

22.38

Return on Average Net Worth (%)

17.31

14.06

Book Value per Share (?)

173.69

163.57

Debt Equity Ratio (times)

6.98

6.15

Price Earnings Ratio (times)*

5.24

5.57

Interest Coverage Ratio (times)

1.52

1.44

*PE Ratio has been calculated on the basis of Closing Price of equity share of REC at NSE as on March 29, 2019 (March 30 and 31, 2019 being holidays) & March 28, 2018 (March 29, 30 and 31, 2018 being holidays), respectively.

5.4 Resource Mobilization

The Company mobilized Rs 69,383.22 crore from the market during the financial year 2018-19. This comprised of Rs 19,550 crore by way of term loans from Banks & FIs, Rs 5,000 crore term loan from National Small Saving Fund, Rs 6,651.80 crore by way of Capital Gain Tax Exemption Bonds and Rs 24,010.40 crore by way of Institutional Bonds. The Company also mobilized funds of Rs 14,171.02 crore equivalentto USD 1,992.50 million [USD 1,367.50 million from external commercial borrowing and USD 625.00 million from FCNR(B)] during the financial year 2018-19. In addition to above, an amount of Rs 19,393.04 crore was also raised through Commercial Paper.

Further, for meeting Government of India's funding requirement of DDUGJY and SAUBHAGYA Scheme, the Company, during the year, has also raised an aggregate amount of Rs 13,827 crore through Institutional Bonds on private placement basis. The repayment of principal and service of interest of these bonds shall be made by Government of India through Ministry of Power.

Disclosure of Green Bonds issued by REC

Towards realization of the Hon'ble Prime Minister's vision of harnessing green energy's enormous potential in the country and to achieve the targeted capacity of 175 GW by 2022, REC raised USD 450 million Green Bond in July 2017 for a tenor often years, which are listed on the International Securities Market (ISM) segment of London Stock Exchange and also on Singapore Stock Exchange.

Use of Proceeds: The proceeds have been utilized to finance Solar, Wind and Renewable Purchase Obligations including refinancing of eligible projects as defined in the Green Bond framework of REC, contributing to positive environmental impact and also strengthening India's energy security by reducing fossil fuel dependency.

KPMG, India has provided its post-verification Independent Assurance Report based on the Green Bond framework of REC and the same has also been certified by the Climate Bonds Standard Board of Climate Bond Initiative on July 17, 2018.

In accordance with the Green Bond framework, REC has created a 'Green Portfolio' managed through a well laid internal tracking system, updated on regular basis, to monitor, establish and account for the allocation of the proceeds for such Green Portfolio.

Management of Proceeds: The net proceeds from the Bonds amounting to Rs 2,894 crore were allocated against the following projects as on March 31, 2019:

(A) Solar

SI. No.

Location

Capacity (in MW)

Loan sanction date

Loan sanction amount

Outstanding Amount on March 31, 2019

1

Telangana

45

September 21, 2016

269.50

256.16

2

Telangana

30

September 21, 2016

179.62

170.07

3

Karimnagar, Telangana

15

November 11, 2016

89.84

82.88

4

Chitradurga, Karnataka

10

January 27, 2016

53.81

46.64

5

Warangal, Telangana

15

November 11, 2016

89.84

83.12

6

Karimnagar, Telangana

15

November 11, 2016

89.84

82.85

7

Anantpur, Andhra Pradesh

5

February 9, 2015

24.45

21.06

8

Telangana

30

September 21, 2016

179.62

169.70

9

Kadapa, Andhra Pradesh

50

April 12,2017

277.50

275.93

10

Randa Reddy, Telangana

5

January 27, 2016

26.90

25.11

11

Mansa, Punjab

50

September 22, 2016

242.84

-

12

Medak, Telangana

7

November 26, 2015

39.90

36.57

13

Nizamabad, Telangana

15

November 11, 2016

89.84

82.53

14

Andhra Pradesh

23

February 24, 2016

140.00

-

15

Karimnagar, Telangana

15

November 11, 2016

89.84

82.87

16

Nirudanagar, Tamil Nadu

5

July 14, 2015

26.13

22.32

17

Chitradurga, Karnataka

30

April 17, 2017

150.39

150.39

18

Mansa and Sangrur, Punjab

50

May 21, 2016

169.69

157.53

 

Sub-Total (A)

 

 

2,229.55

 

(B) Wind

1

Sangli, Maharashtra

10

February 24, 2015

47.09

42.89

2

Mandasaur, Madhya Pradesh

20

January 28, 2016

86.63

70.54

3

Tirpur, Tamil Nadu

6.8

June 6, 2012

26.16

19.95

Sub-Total (B)

159.88

133.38

(C) Renewable Purchase Obligation

1

Maharashtra

RPO

July 24, 2017

500.00

447.92

2

Maharashtra

RPO

September 21, 2017

1,000.00

633.33

Sub-Total (C)

 

 

1,500.00

1,081.25

Grand Total (A+B+C)

 

 

3,889.43

2,960.36

REC is compliant with the requirements of its Green Bond framework as per its continuing obligations to ensure that the amount raised through Green Bonds remain invested in the eligible projects as per the Green Bond framework during the tenor of bonds.

Cash Credit Facilities

The Company has an approved Cash Credit/WCDL/OD limit of Rs 11,840 crore for availment from various banks for its day-today operations.

5.5 Domestic and International Credit Rating

Domestic

The domestic debt instruments of REC continued to enjoy AAA rating - the highest rating assigned by CRISIL, CARE, India Ratings & Research & ICRA-Credit Rating Agencies.

International

REC enjoys international credit rating of Baa3 and BBB- respectively from Moody's and FITCH, International Credit Rating Agencies.

5.6 Cost of Borrowing

The overall weighted average annualized interest rate of borrowing is 7.96% for the funds raised during the financial year 2018-19 and 7.76% for the borrowings outstanding as on March 31, 2019. As a result, your Company was able to deliver/ provide financial assistance at competitive rates.

5.7 Redemption and Pre-Payment

During the year, the Company repaid a sum of Rs 34,741.67 crore. This includes repayment amounting to Rs 17,794.20 crore to Institutional bondholders, Rs 6,476.697 crore worth of Capital Gain Tax Exemption Bonds, Rs 19.04 crore towards Infrastructure Bonds, Rs 6,016.58 crore of external commercial borrowings, Rs 4,149.15 crore of FCNR loans and Rs 286.00 crore of Official Development Assistance (ODA) loan. The Company has also redeemed long term loan of Rs 200 crore and Commercial Paper with face value of Rs 15,250 crore.

5.8 Financial status at the close of the year

At the close of the financial year 2018-19, the total resources of your Company stood at Rs 2,97,717.30 crore. Out of this, Equity Share Capital contributed Rs 1,974.92 crore, other equity including Reserves and Surplus stood at Rs 32,328.02 crore, Financial Liabilities including borrowings and other Financial Liabilities accounted for Rs 2,63,232.24 crore, Non-Financial Liabilities including provisions and other non-financial liabilities stood at Rs 182.12 crore. These funds were deployed as Financial Assets including Long /Short Term Loans, investments, etc. of Rs 2,94,589.85 crore, Non-Financial Assets including Property, Plant & Equipment, Tax Assets, etc. of Rs 3,127.45 crore.

5.9 Policy Initiatives

The Company constantly reviews its policies/ procedures from time to time, to suitably align with market requirements and also with its corporate objectives and applicable statutory requirements. During the year, your Company has adopted/ amended various policies and guidelines, such as policy for Interest Rate Reduction for Conventional Private Sector Borrowers (Generation Projects); updation in the policy for renewable energy loans; review of Integrated Rating Guidelines for Entity & Project Appraisal of Private Sector Power projects; policy for financing of Inter-State Transmission (ISTS) projects in private sector awarded through Tariff Based Competitive Bidding (TBCB) route; policy for forms of equity instruments for infusion of promoters' contribution of equity for funding of all categories of power projects; revision in sanctioning limit of various loan proposal(s) under Delegation of Powers; Modification in the Company's Comprehensive Risk Management Policy; Policy on Payment of nominal fee to related party towards administrative expenses in Related Party Assignments.

Despite growing competition in the market, the Company has been able to maintain healthy spreads, balancing its objectives of business growth and profitability during the year.

6. PRESENT TRANSMISSION & DISTRIBUTION SCENARIO

Transmission and Distribution (T&D) industry is poised to witness large scale capacity addition and System augmentation on three accounts - presently, the Country's installed generation capacity is now at a high of approx. 356 GW(as on March 2019) as per Central Electricity Authority. The enormous capacities are planned to be added through Renewable Energy sources, with the ambitious goal of 175 GW by 2022 necessitating development of dedicated Green energy evacuation corridor and its integration with the existing Grid. Development of large capacity Solar Parks is one such major initiative in this direction.

Also, there is simultaneous need to strengthen the technically old and aging distribution infrastructure. Establishment of Solar Parks poses requirement for planning in line with upcoming renewable energy capacity developments and creation of infrastructure to ensure system availability with relatively shorter gestation period. The need of the hour is to install a state of the art robust and reliable evacuation and distribution system capable of handling higher loads. With the accomplishment of targeted Household connections under the Government of India flagship programme Saubhagya and expected kickstart in the rural economy, the demand is set to rise in the coming years which creates the immediate need for augmentation and strengthening the distribution backbone in advance. Therefore, to make the sector reliable, healthy, affordable and capable of absorbing the envisaged future growth vis-a-vis capacity addition and reaching the last mile across the country, T&D segment shall be the prime focus area in the coming years. The Policy framework has been able to increase the resolve of State Governments to provide reliable power supply to consumers and integration of upcoming renewable energy sources with the electricity grid.

To revitalise the distribution sector, Government of India since 2014 has undertaken major initiatives viz. programme like DDUGJY & SAUBHGYA, Ujjwal DISCOM Assurance Yojana (UDAY), Smart Grid task force and other programmes viz. IPDS,

NEF, etc. and is committed to improve & turn around the power distribution sector in the country. Your Company as a Nodal Agency is playing a pivotal role in partnering with Ministry of Power, Government of India in improving the state of the sector.

Your Company has been playing an active role in creation of new infrastructure and augmentation/strengthening of the existing network. Your Company encourages the DISCOMs to expedite various reform measures and to adopt best practices including modernization and automation of systems/smart grid, IT-enabled systems for metering and consumer services, other technology interventions in the distribution sector & helps them in improving their operational and financial performance.

Keeping in tune with the times where utilities are facing difficulty to keep themselves afloat and meet the consumer expectations at the same time, your Company today finances entire gamut of Distribution Projects broadly with the objectives of System Improvement & Augmentation, loss reduction measures, IT based system implementation, consumer satisfaction, etc. Your Company is always ready to consider special dispensation/requirements of DISCOMs based on the prudence/merit and sound appraisal mechanism.

Your Company hopes that the distribution scenario would consistently improve and turnaround in near future when the impact and outcomes of the above programmes in conjunction with the reform measures taken up by the respective States start trickling in and transform the entire distribution landscape.

Distribution has therefore a crucial role to play in development and sustainability of the power sector and overall Socio-economic development of the country.

Increased demand of quality power to the end consumer needs a robust transmission and distribution infrastructure. Further, technological advancement in mobility including hybrid vehicles, electric vehicles, charging stations with incentivised support of Central Government is happening at a fast pace. Therefore, in tune with the above, huge investments are foreseen in this domain in the imminent future.

Accordingly, the TRANSCOs and DISCOMs need to create the infrastructure and enhance their capital expenditure during forthcoming years to be able to provide reliable, robust & efficient system for transfer of power from generation facilities to sub-stations and up to the consumer end.

6.1 Major reforms in Distribution Sector

Government of India from time to time has made all efforts to ensure the overall development of the Sector by way of Electricity Act, 2003 and various other policy measures such as National Tariff Policy, National Electricity Policy, Rural Electrification Policy, etc., to provide a comprehensive framework and also the blueprint for Power Sector reforms. The operational and financial performance from the year 2014 onwards are an indication that the distribution sector is headed in the right direction. The process of un-bundling, corporatization, instituting regulatory commission, etc., has already been completed in most of the States, thus increasing their accountability and also providing more autonomy to the DISCOMs. Distribution Franchisees have been engaged in particular areas by some DISCOMs on case to case basis to boost the operational efficiency. In the past, programmes like R-APDRP and RGGVY were implemented to extend the benefits to the ailing DISCOMs with an objective to strengthen the infrastructure, reduce the losses in urban pockets, introduce IT and to provide last mile connectivity with service connections to BPL, respectively. Progressive interventions such as DDUGJY, IPDS and UDAY implemented by Government of India has come as an enabler for operational and financial turnaround of DISCOMs. Further, NEF - an Interest Subsidy Scheme is also under implementation with objective to promote capital investment & expedite the reform process in distribution sector.

REC is the Nodal Agency for implementation of DDUGJY & NEF scheme and is playing a key role in supporting the efforts of Government of India in implementation of UDAY also. REC supports the funding requirement of the loan component under DDUGJY and IPDS programmes. The financial outlay of DDUGJY and IPDS has provided considerable fillip to the pace of capital investments in distribution sector and strengthen the distribution backbone for absorbing the future growth pattern of electricity consumption both in rural and urban areas, without putting additional strain on already stressed balance sheets of DISCOMs. Also, REC provides counterpart funding to R-APDRP projects which aim to reduce the AT&C losses considerably in urban areas.

Power for AN document signed by all States reflects the commitment to work towards achieving the very objective across the country. Your Company has been instrumental in development of Power for AN Web-Portal and is engaged in assisting Ministry of Power in this endeavour. Your Company is also partnering and working along with respective State Utilities in this effort by making available requisite financing as well as working with Central & State Governments to resolve issues, if any for achievement of the objective.

An Integrated Rating System for all the State DISCOMs in the Country has been put in place by Ministry of Power which provides realistic performance assessment based on key defining parameters. The Rating methodology enables the

DISCOMs analyse their strengths & weaknesses and facilitate a focused approach for improving upon their operational and financial performance. It has also helped Banks/FIs in maintaining a consistent approach in analysis while considering funding proposals of distribution companies.

Deliberations on separation of Carriage (local networks) and Content (electric supply) are also underway with the various stakeholders viz, Customers, State Utilities, Policy Makers, Governments, SERCs, CERC and CEA, etc. The step is expected to usher in Competitive Power Pricing with the inclusion of a large number of Supply Licenses. The customers will thus have ease in choosing their suppliers and will have to only pay the fixed transmission charges for using the wires for wheeling of power from source to their facility. This however, would require state of the art technology intervention and process upscaling finally leading to significantly improved quality and cost-effective services to consumers.

The introduction of Information & Communication Technology (ICT) in Power Distribution sector would enable the power system to become SMART & with the two-way real-time data flow would help Utilities to manage the entire system as an integrated framework, actively sensing and responding to changes in power demand, supply, costs, quality of power, etc. Utilities would be better equipped to map the individual consumers data based on important parameters viz. time of day, quality and quantum of consumption, nature of load, seasonal load pattern, etc. for better demand side management. Meters with feature of real time communication with the Data Centre, would add to revenue as the power used earlier as theft would not go unnoticed. Consumers also can monitor their consumption pattern and accordingly plan their future usage of power.

Through National Smart Grid Mission (NSGM), another focus area of Ministry of Power, financial assistance to several pilot projects has been extended. Further, an inter-ministerial group - Smart Grid Task Force (ISGTF) is developing Smart grid road map of the country. Out of the 11 Smart Grid Pilot Projects taken under NSGM for testing various functionalities under Indian environment. The status as of May, 2019 is - one is in commercial operation; six projects have been completed and four projects have been declared Go-Live. The objectives of these Pilots cover- Power Quality Management (PQM), providing Advanced Metering Infrastructure (AMI), Outage Management (OM), Peak Load Management (PLM) and also DG (Distributed Generation) & Micro Grid functionalities. At present 5 Projects of Smart Grid are at various stages of implementation in different cities. The initiative would aid in moving towards a Smarter Grid.

Upgradation of technology and adoption of best practices by the distribution sector to cater to the requirement in promoting development of 100 smart +cities would present new financing opportunities.

The two pronged mission of Government of India of facilitating power to all and improving operational & financial performance of the Utilities have already started showing results in terms of timely notification of tariffs by Regulator in many States, filing of MYT petitions, claiming of Return of Equity in the ARR, release of revenue subsidy by State Government, etc.

6.2 National Electricity Fund

REC is Nodal Agency for National Electricity Fund (NEF) - this is an interest subsidy scheme having provision of Rs 8,466 crore (against interest subsidy & other incidental expenses) to be provided over 14 years against interest paid on loan disbursements amounting to Rs 23,973 crore for distribution schemes sanctioned during two financial years viz. 2012-13 and 2013-14. Ministry of Power, Government of India provides interest subsidy on interest paid for loans availed by the State Power Utilities, Distribution Companies both in public and private sector, to improve the infrastructure in Distribution Sector. The Scheme is reform linked and interest subsidy of 3% to 7% is payable to the DISCOMs on achievement of reform based parameters outlined in NEF guidelines. Initially, NEF Steering Committee approved projects of Rs 25,000 crore which have now reduced to Rs 23,973 crore due to delisting of some non-starter projects as per decision of the NEF Steering Committee. The utilities from the states of Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand and West Bengal have already benefitted from the interest subsidy of Rs 175.07 crore, released under the scheme till March 31, 2019.

6.3 Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) is the flagship scheme of Government of India, covering all aspects of rural power distribution. Under the scheme 60% of the project cost (85% for special category States) is provided as grant by Government of India and additional grant up to 15% (5% for special category States) on achievement of prescribed milestones. All unelectrified villages/habitations irrespective of population criteria are covered for electrification, in accordance with the guidelines of the scheme. All erstwhile ongoing Rural Electrification schemes had been subsumed in DDUGJY. REC is the Nodal Agency for operationalization of DDUGJY scheme as well.

DDUGJY facilitates towards achievement of '24x7 Power for AH' in rural areas of the country through the following project components:

a) Separation of agriculture and non-agriculture feeders facilitating continuous quality power supply to non-agricultural consumers and adequate power supply to agricultural consumers,

b) Strengthening and augmentation of sub-transmission & distribution infrastructure

c) Micro-grid and Off-grid distribution network

d) Metering of Distribution Transformers/Feeders/Consumers; and

e) Rural Electrification component (including the erstwhile RE projects).

In order to realize the objectives of the scheme, participation of all stakeholders particularly public representatives had already been institutionalized through constitution of District Electricity Committees (now District Development Coordination and Monitoring Committee (DISHA)) under the Chairmanship of senior most Member of Parliament. DISHA is empowered to monitor and review implementation of DDUGJY

6.4 Prime Minister Development Package (PMDP) for Jammu & Kashmir 2015

The Prime Minister Development Package for Jammu & Kashmir 2015 was announced by Hon'ble Prime Minister on November 27, 2015, with approved project cost of Rs 2,570.14 crore (Government of India grant being 90% i.e. Rs 2,301.62 crore). Project component includes Distribution Strengthening Projects for Rural Areas for an amount of Rs 1,157.75 crore for which Government of India shall release funds through REC. Work covered under Distribution Strengthening Projects for Rural Areas are System Strengthening and connecting unconnected Households, replacing of barbed wire & worn-out poles, UG Cables at tourist places, Consumer Metering, construction of 33/11 kV Sub-stations at Industrial areas and electrical infrastructure at Shrines.

6.5 SAUBHAGYA - Pradhan Mantri Sahaj Bijli Har Ghar Yojana

The Hon'ble Prime Minister launched Pradhan Mantri Sahaj Bijli Har Ghar Yojana - Saubhagya on September 25, 2017 to achieve Universal Household Electrification covering every village and District in the country. Universal Household electrification requires creation of electricity access through last mile connectivity. Wherever, Grid connectivity is technically not feasible and financially unviable, electrification was resorted through Solar based Off-Grid systems. The Scheme outlay is Rs16,320 crore including Gross Budgetary Support of Rs12,320 crore. REC is nodal agency for operationalization of the scheme.

The scheme aims at (a) Providing last mile connectivity and electricity connections to all un-electrified households in rural areas; (b) Providing Solar Photovoltaic (SPV) based standalone system for un-electrified Households located in remote and inaccessible villages / habitations, where Grid extension is not feasible or cost effective; and (c) providing last mile connectivity and electricity connections to all remaining economically poor unelectrified households in urban areas. Non-poor urban households are excluded from this scheme.

6.6 Ujwal DISCOM Assurance Yojana (UDAY)

Financially stressed DISCOMs were incapable of supplying adequate power at affordable rates, which has for long hampered the quality of life, overall economic growth and development in the country. Efforts towards 100% village electrification and then 100% household electrification, 24X7 power supply and clean energy cannot be achieved without undertaking adequate capacity building of DISCOMs. Moreover, the issues of frequent power outages needed earnest resolution for meeting national priorities like Make in India and Digital India. The unresolved legacy issues with DISCOMs had kept them trapped in vicious cycle with operational losses being funded by debt. Outstanding debt of DISCOMs had increased from about Rs 2.4 Lakh crore at the end of 2011-12 to about Rs 4.3 Lakh crore in 2014-15. To ensure permanent resolution of all these long standing as well as potential future issues, the Ministry of Power, Government of India through Ujwal DISCOM Assurance Yojana (UDAY), launched in November 2015, is a path breaking reform for realizing the Hon'ble Prime Minister's vision of affordable and accessible 24 x 7 power for all.

UDAY scheme empowers DISCOMs with the opportunity to break even at the end of their respective MoU periods through initiatives viz. (i) improving operational efficiencies of DISCOMs; (ii) reduction of cost of power; (iii) reduction in interest cost of DISCOMs; and (iv) enforcing financial discipline on DISCOMs through alignment with State finances.

The programme has already witnessed significant traction from various State Governments/ DISCOMs already and 32 States / UT are now part of UDAY fold, with 16 States (Jharkhand, Chhattisgarh, Rajasthan, Uttar Pradesh, Punjab, Bihar, Haryana, Jammu & Kashmir, Andhra Pradesh, Madhya Pradesh, Maharashtra, Himachal Pradesh, Telangana, Assam, Tamil Nadu & Meghalaya) joining for comprehensive improvement and balance 11 States & 5 UTs joining for operational turnaround. UDAY scheme is showing encouraging results as liabilities of DISCOMs of Rs 2.09 Lakh crore is being taken over by State Governments and additionally Rs 0.24 Lakh crore have been restructured / repriced through issuance of bonds; thus cleaning the balance sheets of DISCOMs and enabling them to restart the Capital Expenditure cycle while also enabling financially viable operations of all power sector stakeholders i.e. DISCOMs, TRANSCOs, GENCOs, IPPs, Banks / FIs, etc.

Your Company is assisting Government of India to liaise with respective State Governments/Utilities to enable achievement of objectives envisaged under the programme and was instrumental in development of UDAY Web Portal (www.uday.gov.in) and UDAY Mobile App, which is a key enabler in achieving the major objectives outlined under the programme. Through Web Portal/Mobile App, all the details with respect to performance of DISCOMs are readily available vis-a-vis the planned trajectory under the scheme. Accordingly, any deviations in the performance get suitably highlighted for all stakeholders, thus enabling DISCOMs to take corrective actions and others to appropriately assess their condition. Also, earlier the information with respect to DISCOMs performance used to be very outdated and with UDAY Web Portal & Mobile App now, the provisional performance of latest Quarter is available largely within gap of 1 to 3 months.

6.7 Urja Mitra

Urja Mitra is a distribution sector reform, being implemented through your Company's subsidiary RECTPCL under guidance of Ministry of Power. Urja Mitra is a first of its kind application which provides a Central Outage Management and Notification Platform (Web-Portal www.urjamitra.com as well as Mobile App) for State Power Distribution utilities to disseminate Power Outage information to urban / rural power consumers across India through SMS/email/push notifications. Power Consumers across the nation get outage update through integrated Mobile Application for Android and iOS platforms-prior intimation of expected duration and cause of scheduled power outages and post fault intimation of unscheduled power outages duration. It also provides a platform to view real time power outages in any part of the Country, lodge a complaint on power outages. The Stakeholder connect is ensured by providing for vernacular mobile apps, which can be used by field staff to trigger power outage information/view ongoing outages/take corrective action on outage complaints etc.

By May, 2019, data of around 19.05 crore consumers of 52 DISCOMs of 29 states is uploaded into the application and till date 135.46 crore SMS have been sent to the consumers.

6.8 11 kV Rural Feeder Monitoring Scheme

To get a complete picture of the entire distribution network in country and to ensure achievement of 24x7 Power for AH vision of Government of India, it was felt essential to capture real time supply parameters of rural India and this could be achieved by monitoring the availability/quality of power supply in rural areas of the country recording actual distribution parameters i.e. Power supply, outages and by conducting feeder wise energy audit and AT&C losses calculation.

In order to meet the above objective, Ministry of Power, Government of India has introduced 11 kV Rural Feeder Monitoring Scheme under the Distribution Sector Reforms and has appointed REC Transmission Projects Company Limited as Implementing Agency for the same. Under the Scheme, meter data of rural feeders is sent to central Meter Data Acquisition System (MDAS) for analysis and the same is then integrated with National Power Portal (NPP) to make it available for use of all stakeholders.

This scheme targets to develop a self-sustained, independent, web based automated system for almost 1.1 Lakh rural and agricultural feeders across country by acquiring various essential parameters of all the outgoing 11 kV rural feeders & such 66/33 kV incoming feeders from where 11 kV rural feeders are emanating and making the information available online for all on public portal on real time basis, for power supply monitoring, alerts, meter data analysis, information dissemination and energy audit. By May 2019, more than 71,000 Modems have been installed which are providing around 80% of communication.

The System would help for monitoring power supply, proper planning, decision support and taking corrective actions on the business activities in addition to transparently disseminating the power supply status. It would further facilitate consolidation of various parameters downloaded from the meters installed on the feeders into a common database thus enabling generation of various MIS reports for analysis and actions.

6.9 Tarang

Tarang - Transmission App for Real-Time Monitoring and Growth is a transmission sector initiative for better monitoring, being run under guidance of Ministry of Power through your Company's subsidiary RECTPCL. It provides an informative medium regarding the Pan India progress of Transmission System which can be drilled down for analysis to month wise, agency wise, state wise information etc. The reasons of delay in case of stalled/delayed projects is separately provided so that all concerned stakeholders can take timely corrective decision for project completion. Tarang monitors the progress of both Inter State and Intra State Transmission Projects being implemented through Tariff Based Competitive Bidding (TBCB) as well as Regulated Tariff Mechanism. In other words, it is a realtime repository of Transmission System across the country.

Tarang also shows the prospective upcoming Inter-State as well as Intra-State Projects along with their status from bidding stage to award, construction, completion and reasons of delay, if any Pan India. Tarang provides advance information of upcoming transmission projects approved by Empowered Committee on Transmission aiding bidders to gear up for future transmission projects.

7. FINANCING ACTIVITIES

Your Company has been providing funding assistance for power generation, transmission & distribution projects including for the electrification of villages. Details of major financing activities during the financial year 2018-19 are as under:

7.1 Generation

During the financial year 2018-19, your Company sanctioned 56 Nos. of Generation/R&M loans including 4 Nos. of additional loan assistance with total financial outlay of Rs 41,431.87 crore including consortium financing with other financial institutions as details mentioned below:

(Rs in crore)

[Particulars

No. of Loans

Loan Amount

State Sector

 

 

Fresh Loan

49

28,592.37

Additional Loan

2

2012.49

Private Sector

 

 

Fresh Loan

2

8,701.30

Additional loan

2

2,025.71

Other

1

100.00

Total

56

41,431.87

7.2 Renewable Energy

During the year, REC sanctioned loan assistance  of Rs 11,875.20 crore to 36 Renewable Energy  projects with installed generation capacity  aggregating 2197.46 MW, out of which 12 were  solar photo-voltaic projects aggregating 860  MW, 13 were wind energy projects aggregating  1280MW, 2 were small hydro projects aggregating 27 MW, 1 was solar pump set project (6,583 No. of pump sets) aggregating  28.81 MW, 1 was solar PV rooftop project aggregating 1.65 MW, 1 was Electric-vehicle project and 6 were loans to State DISCOMs for meeting their renewable purchase obligations.

The total cost of all the projects sanctioned during 2018-19 aggregates to Rs 17,273.54 crore. The sanctions and disbursement under renewable energy category recorded a growth over 69% and 23% respectively vis-a-vis the previous year. The disbursement achieved during the year was Rs 6,627.76 crore as detailed below:

Particulars

Unit

FY 2018-19

FY 2017-18

Projects Sanctioned

Nos.

36

28

Capacity of Sanctioned Projects

MW

2,197.46

704

Cost of Projects

Rs in crore

17,273.54

9,453.42

Loan Sanctioned

11,875.20

7,034.24

Loan Disbursed

6,627.76

5,403.27

7.3 Transmission & Distribution

Your Company continued to play an active role in the creation of new infrastructure and improvement of the existing ones under the transmission and distribution network in the country under its T&D portfolio. In line with the Government of India's objective to provide power for all by creation of infrastructure and also to reduce the AT&C losses, your Company has been financing schemes for expansion and strengthening of the transmission network and more importantly, modernizing the existing distribution system through new technologies.

During the financial year 2018-19, your Company sanctioned 784 Nos. of Transmission and Distribution schemes involving a total loan assistance of Rs 50,610.28 crore. This includes primary power evacuation schemes associated with generating plants, system improvement schemes, schemes for Procurement & Installation of equipment/materials like meters, transformers, conductors, tower material, cables, etc. Government approved schemes like DDUGJY, IPDS & Saubhagya schemes and Infrastructure schemes for providing electricity access to various categories of consumers including Agriculture.

7.4 Short / Medium Term Loans and other Loan assistance

During the financial year 2018-19, your Company has also sanctioned 38 loan assistance of Rs 12,040 crore to various power utilities, in the form of short / medium term loans & other loan assistance, to meet their funds requirement of short/ medium term & working capital, etc.

7.5 Financing Activities in North Eastern States

During the financial year 2018-19, a total sum of Rs 1,833.29 crore was sanctioned and an amount of Rs181.17 crore was disbursed against various projects in State and Private Sector relating to Generation and Transmission & Distribution in North Eastern states, as detailed in the tables, attached to this Report.

7.6 Appraisal System for Financing Private Sector Projects

REC has its own guidelines for appraisal of Private Sector Conventional, Renewable Power Generation and integrated mining with Power Plant Projects. The appraisal is carried out on the basis of the financial performance, creditworthiness, management proficiency & sectoral experience of the promoter entities. REC's interest rates & security structure are linked to the grades/integrated ratings assigned to the Private Sector Projects.

During the year, REC has reviewed the existing guidelines for Private Sector Projects in view of the changing market practices, regulatory environment and RBI policies to strengthen the appraisal process. The Company has first time forayed into financing e-vehicle as forward integration for energy security (fuel switching), energy efficiency (re-generative braking) and carbon footprint reduction in mass transport buses.

7.7 Grading of State Power Utilities

Your Company has well defined policy/guidelines for grading of State Power Utilities and the Grading exercise for grading of State Power Utilities (Generation/Transmission and Trading Utilities) has to be done twice in a year.

For the purpose of funding, your Company has classified State Power Generation and Transmission Utilities into A++, A+, A, B and C categories. The categorization (bi-annually) of State Power Generation and Transmission Utilities is arrived based on the evaluation of utility's performance against specific parameters covering operational & financial performance including regulatory environment, Audited Financial Statements, etc. Further, with regard to State Power Distribution utilities (including SEBs/utilities with integrated operations), your Company adopts ratings of Independent Rating Agencies jointly appointed by PFC and REC based on the rating framework approved by the Ministry of Power, Government of India. The categorization enables your Company to determine credit exposure limits and interest rates to the state power utilities.

During the year, your Company has completed grading exercise twice and after mapping of Integrated rating for DISCOMs, 117 utilities including 8 new State entities were categorized/graded out of which 19 utilities were graded as A++, 32 as A+, 40 as A, 18 as B and 8 utilities were graded under Category C.

7.8 Investments made during the financial year 2018-19

The Company has not made any new investments during the financial year 2018-19. 8. INTERNATIONAL COOPERATION & DEVELOPMENT

REC has four lines of ODA credit with KfW, Germany and three of them have been fully drawn as on March 31, 2019. KfW-l and KfW-11 ODA loans are of EUR 70 million each (approx. Rs 454.02 crore& Rs 480.97 crore, respectively) and KfW-lll is of EUR 100 million (approx. Rs 753.73 crore). In Fiscal 2019, REC entered into a fourth loan agreement with KfW for financial assistance of USD 228 Million. As on March 31, 2019, no amount has been drawn under this facility.

Apart from above, REC has two lines of ODA credit with JICA, Japan. Both of them have also been fully drawn. Under JICA-I & II ODA loans, cumulative amount of JPY 16,949.38 million (approx. Rs 820.12 crore) and JPY 11,809.48 million (approx. Rs 640.64 crore) respectively, has been drawn as on March 31, 2019.

9 PERFORMANCE AND ACHIEVEMENTS OF GOVERNMENT PROGRAMMES DURING FINANCIAL YEAR 2018-19 9.

1 Deendayal Upadhyay Gram Jyoti Yojana (DDUGJY)

9.1.1 Village Electrification - Landmark achievement

India's rural electrification programme passed through several stages of improvement with appropriate intervention at Government of India level. In spite of various programmes of Government of India, as on April 1, 2015; there were 18,452 villages which still remained then un-electrified.

In the 69th Independence Day address on August 15, 2015, Hon'ble Prime Minister pledged to the nation that all remaining Un-Electrified (UE) villages in the Country would be electrified within 1,000 days with the help of States and local bodies. Accordingly, Ministry of Power had fast tracked electrification of all 18,452 villages on priority mode. As these remaining 18,452 un-electrified villages were located in inaccessible areas (thickly forested, mountainous regions, etc.) involving tough terrain, inclement weather, areas facing Right of Way (RoW) issues, areas plagued by insurgency, Leftwing extremism, etc, the following measures and intensive monitoring mechanism strategies had been adopted:

Entire process of village electrification categorized into 12 milestones.

Engineers viz., 'Gram Vidyut Abhiyanta (GVA) were deployed at Block/District level for shouldering this mission at field level.

Dedicated web-portal viz. 'GARV App' (www.garv.gov.in). well acknowledged for its transparent and accountable mechanism was developed for meticulous monitoring the progress of electrification of all 18,452 Un-Electrified villages through an online system along with the milestones of village electrification progress.

Cluster based implementation approach.

Priority given for RE as a separate component.

Flexibility in mode of execution i.e. Turnkey/partial Turnkey/departmental.

Where Grid connectivity is not feasible or not cost effective, Decentralized Distribution cum Generation was extended.

Regular review Meetings at the highest level of Government of India.

State specific review meetings at Hon'ble Chief Ministers level.

During the course of village electrification process, States reported an additional 1,227 villages as un-electrified. Accordingly, REC made all concerted efforts in facilitation and made available adequate funds for village electrification. To those inaccessible difficult to approach villages, air lifting of material were resorted through choppers of Indian Air Force to the States of Jammu & Kashmir State and Arunachal Pradesh. Further, assistance of Railways were availed for transporting voluminous materials toArunachal Pradesh. To such remotest areas where neither of the options of sophisticated transportation available, material were transported through manual head loading for days together.

With the above initiatives and collective efforts of States and other stakeholders, April 28, 2018 had been made as a landmark day in the Power Sector domain by achieving electrification of all un-electrified census inhabited villages in the country totaling to 18,374 villages excluding the 1,305 uninhabited villages, with 1,515 villages electrified in this financial year 2018-19.

9.1.2 Performance during financial year 2018-19:

a. Sanction:

Under DDUGJY, additional Infrastructure was sanctioned by Ministry of Power, Government of India to support Household electrification under Saubhagya. During the financial year 2018-19, Rs 14,270.33 crore (Government of India Grant component of Rs 11,237.79 crore) has been sanctioned to States.

b. Fund release:

The subsidy of Government of India is channeled through REC and the matching contribution is infused by the respective State Government/Implementing Agencies through Loan on their own.

Under DDUGJY & PMDP Scheme, a total Government of India Grant of Rs16,920.66 crore (DDUGJY Grid including RE: Rs12,590.47 crore; DDUGJY Off-Grid including RE : Rs140.97 crore; Additional Infrastructure : Rs 4,189.22 crore) have been released to States in financial year 2018-19.

c. Progress of electrification:

During the financial year, under DDUGJY 1,782 Substations (New & Augmentation) have been commissioned and also 4.40 Lakh Distribution Transformers installed. Further, 2,46,717 CKms Feeders (including new 11 kV Lines) have been established.

The State-wise details of sanctions, Subsidy releases & progress of electrification during the financial year are given in Table- 5.

9.1.3 Cumulative Performance upto March 31, 2019:

Under DDUGJY, cumulatively up to March 31, 2019; 5,936 projects for Rs1,08,554 crore have been sanctioned excluding funds sanctioned for creation of Additional Infrastructure for Saubhagya Households to 19 States. Government of India Grant of Rs 71,113.28 crore have been disbursed to the Implementing agencies.

As regard to physical progress, cumulatively upto March 31, 2019, 4,845 Sub-stations (including 2,909 Augmentation Sub-stations) have been commissioned, 10.78 Lakh Distribution Transformer commissioned and 5,80,504 Ckm Feeder Segregation (Including 11 kV Lines) have been laid.

The State-wise details of sanctions, fund releases & progress of electrification are furnished at Table-6.

9.2 SAUBHAGYA- Pradhan Mantri Sahaj Bijli Har Ghar Yojana

As Nodal Agency, REC had taken all necessary following initiatives for successful achievement of Universal Household Electrification by March 31, 2019:

Guidelines issued to all States/Power Utilities;

Dedicated Saubhagya web-portal developed for monitoring (www.saubhagya.gov.in):

Senior Officers of REC nominated as State level Nodal Officers;

Gram Vidyut Abhiyantas (GVA) were deployed across the districts in States where major un-electrified households remain;

Regular Review Meetings with District level officials, DISCOM personnel, review of the scheme by Senior Officials of Ministry of Power, Government of India and with State Energy/Power Secretaries by the Hon'ble Minister of State (1C) for Power and New & Renewable Energy for expediting and resolving issues;

Over and above sanction of Rs14,017 crore under Saubhagya scheme, an additional amount of Rs14,270 crore also sanctioned for creation of Additional Infrastructure for supplementing Saubhagya Household Electrification;

As on March 31, 2019, cumulatively Government of India Grant of Rs 4,249.47 crore released to States, in which Rs 2,709 crore Government of India grant has been released during financial year 2018-19; and

In order to ensure that no willing household left out without electricity connection, as per Ministry of Power directive, REC impressed upon the States to launch special campaign in the form of movement of Saubhagya Raths across the Districts, door to door campaign, electricity camps in villages and publication in electronic and print media, etc.

With the above initiatives of REC, Ministry of Power and active support& cooperation of States/Power Utilities and other stakeholders, 262.84 Lakh households have been provided electricity connections since launch of Saubhagya including release of 222.39 Lakh connections during this financial year 2018-19.

All States except 18,734 unelectrified households due to LWE issues in Chhattisgarh achieved Universal Household Electrification by March 31, 2019.

The State-wise details of progress of households & fund release are furnished at Table- 7.

10. STANDARDIZATION, QUALITY CONTROL& MONITORING:

In line with the Quality Control Mechanism under DDUGJY, REC Quality Monitors (RQM) have been appointed for 413 projects in 25 states under XI plan (Phase-l&ll), 273 projects in 15 states under XII Plan and 633 projects in 31 states under DDUGJY New Scheme, for ensuring quality of material and works.

During the financial year 2018-19, RQMs have undertaken inspection of 12,226 villages & 308 power substations under DDUGJY-RE XI & XII plan and 3,550 villages & 354 power substations under DDUGJY-New scheme. In addition, RQMs have undertaken material inspection of 103 Nos. under DDUGJY-RE XI & XII plan and 1,080 Nos. under DDUGJY-New scheme at manufacturer premises for ensuring quality of works. Further, REC Quality Monitors (RQM) for Saubhagya scheme were also appointed. During financial year 2018-19, 478 Nos. of material inspections were carried out by RQMs under Saubhagya scheme at manufacturer premises for ensuring quality of materials.

11. RISK MANAGEMENT

The Company has a Comprehensive Risk Management Policy which covers the Credit Risk, Operational Risk and Market Risk.

11.1 Risk Management Committee

The Company is having a Risk Management Committee (RMC) which is functioning under the chairmanship of a Part-time Non Official Independent Director and currently comprises of four members i.e. two Independent Directors, Director (Finance) and Director (Technical) as its members for monitoring the integrated risks of the Company.

The main function of RMC is to monitor various risks and also to suggest action for mitigation of risk arising in the operation and other related matters of the Company. The company has identified its various risks and has taken appropriate steps to mitigate them.

The brief description of the risks is as below: (i) Credit Risk:

Credit risk is a risk inherent in the financing industry and involves the risk of loss arising from the diminution in credit quality of a borrower and the risk that the borrower will default on contractual repayments under a loan or an advance. To mitigate the same, the company follows systematic institutional and project appraisal process to assess the credit risk. These processes include a detailed appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures. Further, on regular basis the projects risk are reviewed and categorised as High/Moderate/Low on the basis of different risk parameters and exposure of the project as per Project Risk Categorization Frameworks.

(ii) Operational Risk:

The operational risk arises from inadequate or failed internal processes, people and systems or external events. The Company has an Organization-wide risk categorization framework through which all the operational risks are measured and categorised as High/Moderate/Low. Further, the operational Risks of the Company are studied in eight functional areas such as Business, Compliance, Finance, Human Resource, Information Technology, Legal, Operational and Strategic.

(iii) Market Risk

Market Risk comprises the Interest Rate Risk, Liquidity Risk and Foreign Currency Risk. 11.2 ALCO Committee

To manage the market risk, the Company has constituted an Asset Liability Management Committee (ALCO) which is functioning under the chairmanship of CMD and comprises of Director (Finance), Director (Technical), Executive Directors and General Managers from Finance and Operating Divisions as its members.

ALCO monitors risks related to interest rates, liquidity and currency rates. The brief description of the risks is as below:

(i) Interest Rate Risk:

Interest rate risk is the potential loss arising from fluctuations in market interest rates. In order to mitigate the interest rate risk, company periodically review its lending rates and the weighted average cost of borrowing based on prevailing market rates.

(ii) Liquidity Risk:

Liquidity risk is the risk of potential inability to meet liabilities as they become due. We face liquidity risks, which could require us to raise funds or liquidate assets on unfavourable terms. We manage our liquidity risk through a mix of strategies, including forward-looking resource mobilization based on projected disbursements and maturing obligations.

(iii) Foreign Currency Risk:

Foreign currency exchange risk involves exchange rate movements among currencies that may adversely impact the value of foreign currency-denominated assets, liabilities and off-balance sheet arrangements. The Company manages foreign currency risk associated with exchange rate and interest rate through various derivative instruments.

12. PREFERRED CUSTOMER POLICY

As a part of business promotion strategy, a Preferred Customer Policy was formulated in 2008 with the basic purpose of offering an enhanced level of services to the Company's customers and to have a long term mutually beneficial relationship with them. The Policy lays down the eligibility criterion which takes into account various factors such as amount of loan outstanding, duration of loan relationship, repayment track record of the borrower etc. for determining preferred customers and sponsoring them for capacity building/ domestic/ international seminars/ training programmes organized by various external agencies as well as RECIPMT, Hyderabad.

13. INFORMATION TECHNOLOGY INITIATIVES

(i) Implementation of latest version of ERP running in REC since July 2009:

REC has upgraded its existing e-Business ERP (Oracle e-Biz suite) 11 i (launched on July 24, 2009) to the latest version R12.2.7 along with replacement of ERP hardware. The new ERP supports GST and Indian accounting standard (Ind-AS) and has advanced features which has facilitated further automation of business operation of the Company and integration to other systems like e-Office, etc. The Project has gone live in July, 2018. Core business function of the Company are driven by Oracle ERP.

(ii) REC has implemented state-of-the-art Electronic Office solution of open-text Documentum application for transformation of REC to paperless environment. The system runs in private cloud environment and is continuously improved by adding new features.

(iii) Dp-gradation of REC WAN Network with enhanced Bandwidth: To meet the demanding requirement of operations, Organization wide MPLS VPN network infrastructure (operational since year 2008) has been completely revamped with latest network devices, enhancement of bandwidth, high availability and advanced features.

(iv) Video Conferencing: The Video conferencing facility has been revamped and this bridge-based multi-conferencing facility is being used extensively across all offices and subsidiaries for meetings, Board meetings (with recording facility), conference with external agencies, training including RECIPMT, etc.

(v) Implementation of IT Framework as per RBI Master Direction: REC has implemented IT security directives of Master Direction of IT Framework as per RBI Guidelines involving the following:

a. Gap analysis study with current ICT Setup vis-a-vis RBI master directions on IT framework, Roadmap assessment and reporting to the Board.

b. Formulation of roles and responsibilities, review of existing policies/procedures and formulation of new policies.

c. Constitution of Information Technology Strategy Committee (ITSC) consisting of Independent Director, Chief Information Officer (CIO), Chief Technical Officer (CTO) and an External Consultant (M/s KPMG).

REC continues to comply with Master Direction of IT Framework issued by RBI for NBFC sector.

(vi) As a step towards Digital transformation and to facilitate the borrowers to submit loan application from public domain, an online portal for submission of loan proposals has been developed.

(vii) Revamping of REC Corporate Intranet/Internet Website:

a. REC Corporate Website & Intranet portal have been completely revamped to make it user friendly, dynamic, interactive and accessible from mobile devices from public domain.

b. The website of REC is STQC certified and comply to Guidelines for Indian Government Website (GIGW). Further, MoU target for financial year 2018-19 i.e. DPE guidelines on 'Accessible India campaign' for REC corporate website has been successfully achieved as per timelines.

(viii) Towards transparency in procurement: All procurement of goods and services of value above Rs 2 Lakh is being done online through an E-procurement system. The system complies to e-Reverse Auction as per CVC guidelines and REC Procurement guidelines. Procurement of Goods and services is also done from Government e-Market (GeM) portal, MSME vendors. In addition, REC has deployed a number of in-house developed systems as part of IT initiatives towards achieving better e-governance.

(ix) Primary Data Centre (PDC) and Disaster Recovery Center (DRC): Both PDC and DRC of REC are ISO/IEC 27001:2013 certified and also comply to National Cyber Security Policy of Government of India. REC has also implemented Data Leakage & Prevention (DLP) system at DC & DR for preventing sharing of confidential and critical information outside the corporate network.

(x) REC network is IPv6 compliant as per directive of Government of India.

(xi) Promoting Government of India initiatives: REC facilitates and promotes the IT initiatives of Government of India like MyGov, e-Governance, DPE guidelines on digital mode of payments, etc., within the Company.

(xii) Providing training and Computing facility to Employees: Computer to Employee population ratio is 100%. IT Division also organizes and impart various training programs to upgrade Computer skills of the employees of the Company.

14. REC INSTITUTE OF POWER MANAGEMENT AND TRAINING

REC Institute of Power Management and Training (RECIPMT) formerly Central Institute for Rural Electrification, was established at Hyderabad in 1979 under the aegis of REC Limited to cater to the training and development needs of engineers and managers of Power Sector organisations. The programmes are conducted on the state-of-the-art subjects of Power Generation, Transmission, Distribution and Renewable energy sources.

14.1 National Training Programmes (NTP) under DDUGJY

REC/RECIPMT is the Nodal Agency for coordination and implementation of National Training Programmes for employees of C&D category, under DDUGJY, sponsored by Ministry of Power, Government of India. During the year 2018-19, as against the target of 20,000 employees of C&D category, 16,623 were trained.

RECIPMT on the request of power utilities, has conducted 113 batches of Programmes for employees of C&D category with 2,828 participants for Jodhpur Vidyut Vitran Nigam Limited (JdVVNL), Jammu & Kashmir Power Development Department (JKPDD), Himachal Pradesh State Electricity Board Limited (HPSEBL), Telangana State Northern Power Distribution Company Limited (TSNPDCL) and Telangana State Southern Power Distribution Company Limited (TSSPDCL) at various locations under its banner.

14.2 International Programmes

RECIPMT is empanelled by the Ministry of External Affairs, Government of India to organise training programmes in the area of power sector under ITEC/SCAAP. During the year, RECIPMT has organised 8 International programmes with 150 participants, on the topics, viz., Certificate Course in Power Distribution Management (5 Weeks); Concept to Commissioning of Solar Power Plants (5 weeks); Design, Erection, O&M and Protection of EHV Sub-Stations (6 weeks); Financial Management and Accounting Standards for Power Utilities (6 weeks); Management of Power Generation Plants (6 weeks); Planning and Management of Power Transmission and Distribution System (8 weeks); Emerging Trends in Rural Electrification & Power Management (8 weeks) and Certificate Course in Electric Power Management (12 Weeks) The participants from countries, viz., Afghanistan, Azerbaijan, Angola, Bangladesh, Bhutan, Botswana, Burundi, Cambodia, Democratic Republic of the Congo,

Ethiopia, Gambia, Ghana, Guinea, Kenya, Lebanon, Mozambique, Mauritius, Mongolia, Myanmar, Niger, Nigeria, Rwanda, Seychelles, South Sudan, Swaziland, Sudan, Syria, Sierra Leone, Tajikistan, Tanzania, Thailand, Uzbekistan, Vietnam and Zimbabwe have attended the programmes.

14.3 SAUBHAGYA Programmes

RECIPMT has organized training programs under SAUBHAGYA/DDUGJY, to train scheme implementers i.e. DISCOM Engineers, Contractors and their workers. These trainings are to sensitize them in taking care of Quality Aspects while executing SAUBHAGYA/DDUGJY schemes. 27 batches of Training of Trainers (1 day program) with 1,470 participants were organized & 23 batches of Field Workers Training (Two days program) with 1,181 participants was organized. In total, 2,651 participants were trained.

14.4 Behavioural Skills Programmes

RECIPMT has organized under the sponsorship of REC, training of 850 top/ middle level executives on Behavioural skills with objectives (i) to make aware of Executives their potential; (ii) to orient on Behavioural aspects at work place, skill development, etc.; and (iii) to enhance problem solving ability. The participation was from Distribution, Generation and Transmission utilities across the country and RECIPMT organized them as off-site programs (at utility premises).

14.5 Solar Programmes

RECIPMT has been empanelled by National Institute of Solar Energy (NISE) as partner training institute for conduct of Solar Programmes and organised 5 programmes on Solar Roof Top Power Generation for Distribution Engineers of Telangana State Power Distribution companies at various locations and 2 programmes on Entrepreneur Development programmes on Solar PV for unemployed youth at RECIPMT Campus. In total, 278 participants were trained.

14.6 Regular National Programmes

RECIPMT has organised 21 Regular Training Programmes for the personnel of various Power Utilities on different topics such as Earthing Practices & Safety Measures in Electrical Installations; Implementation of GST; Power Transformer -Testing, Commissioning, Protection & Maintenance; Concept to Commissioning of Solar Power Plants and Grid Enabling; Open Access, Power Trading & Exchange; Latest Trends in Metering, Billing and Collection; Underground Cables -Design, Selection, Laying, Monitoring & Fault Detection; Distribution Transformers- Operation & Maintenance Practices for Failure Minimization; Design, Construction & Quality Control of EHV Substations; Smart Grid and Smart Cities; Labour Laws - Employee Compensation & Contract Labour Act- Procedure in Dealing with Court Cases; Protection System in EHV Sub-stations& Lines; Power Purchase Agreement; Gas Insulated & Indoor Sub-stations; Ind AS (IFRS) Adoption in Power Sector; O&M of EHV Sub-Station and Lines and Quality Assurance; Distribution Loss Reduction Issues, Challenges and Remedial Measures; Design Construction & Testing of Distribution Sub-Station and Lines; Power Transmission Lines, Design, Construction and O&M; Tariff Policy and Submission of ARRs Regulatory Compliance; Operation, Maintenance and Protection aspects of Distribution Sub-station & Lines. A total number of 246 participants attended the above programmes.

14.7 Customized Programmes

16 batches of customised programmes were designed and organised suitable to the utility requirements on their request. The programmes conducted are on O&M of Distribution Sub-Station for JKPDD, Jammu & Srinagar (2 batches) and Jharkhand Bijli Vitran Nigam Limited (JBVNL), Ranch! (2 batches) for their Engineers. The programme on Behavioural Training, Safety Management, Distribution Transformer, Maintenance & Testing (2 batches); Electrical Safety and Inspection of Electrical Installations Under IE Rules (2 batches); Distribution Metering, Advanced Technologies (2 batches) for JBVNL Engineers at Ranchi; Earthing Practices & Safety Measures in Electrical Installations, Design, Construction and Quality measurement of EHV Sub-station, Power Transformer, Design, Manufacturing, Specification and Conditional and Predictive maintenance of major Sub-station equipment, Protection System in EHV Sub-stations & Lines for Maharashtra State Electricity Transmission Company Limited (MSETCL) Executives/Engineers at RECIPMT campus. In total, 347 participants were trained under customised programmes.

14.8 In-house Training Programmes

RECIPMT also organised four in-house programmes for the employees of REC and 47 employees have taken part in these programmes. The topics covered are Understanding of SPU's Grading and REC's Business Areas, sponsored by REC; Loan Documentation, Goods and Services Tax Implementation and Leadership & Communication Skills.

14.9 In all, during the year 2018-19, RECIPMT has conducted 255 programmes on various themes/subjects and trained 7,397 personnel with 24,821 man-days of training, in addition to coordinating and monitoring the National Training Programmes for employees of C&D category, sponsored by Ministry of Power, Government of India.

15. ISO 9001:2015 QUALITY ASSURANCE CERTIFICATION

The Company had implemented Quality Management Systems as per ISO 9001:2008 standards in six major Divisions of Corporate Office and 18 Regional/Sub-Offices across the country for claims processing. Further, this certification has been replaced by International Organization for Standardization (ISO) with ISO 9001:2015 standard and the same is under implementation in REC.

16. HUMAN RESOURCE MANAGEMENT

In order to professionalize the Executive strength of REC and also to infuse fresh blood, three executives were appointed through Campus Recruitment during the financial year. The total manpower of the Company as on March 31, 2019 was 487 employees which includes 386 executives and 101 non-executives.

16.1 Reservation in Employment

The directives issued by the Government of India regarding reservations for SC/ST, etc. in appointment and promotion to various posts were complied with. The group wise details of SC and ST employees out of the total strength as on March 31, 2019 are given below:

Group

Number of Employees

Total

SC

ST

FY 2018-19

FY 2017-18

FY 2018-19

FY 2017-18

FY 2018-19

FY 2017-18

A

346

363

34

35

13

13

B

75

87

12

15

2

2

C

09

16

1

1

0

0

D

57

62

17

17

1

1

Total

487

528

64

68

16

16

16.2 Training & Human Resource Development

As a measure of capacity building including up-gradation of employees' skill sets and to ensure high delivery of performance, Training and HRD continued to receive priority during the financial year. Training and Human Resource Policy of the Company aims at sharpening business skills and competencies required for better employee performance and provides all possible opportunities and support to the employees to improve their performance & productivity. Training was also provided to promote better understanding of professional requirements as well as to sensitize employees to socio-economic environment in which business of the Company is carried out. Training which helped employees benefit in spiritual, health and attitudinal change process was also imparted.

In order to equip the employees professionally, the Company sponsored 203 employees to various training programmes, workshops, etc. within the country and abroad. Taken together, these initiatives enabled the Company to achieve 893 training man days. Further, 19 Executives were deputed for programmes abroad.

16.3 Employee Welfare

In order to provide improved health care facilities to the employees and their dependent family members, the Company has expanded the list of empaneled hospitals under Direct Payment Scheme by adding two hospitals. Further, part time services of three doctors were engaged to provide onsite medical facilities to employees. The Company has also been funding sports & recreation equipments for use by employees and promote well-being of employees.

Sports Activities

During the financial year 2018-19, REC hosted an Inter-CPSU Table Tennis Tournament at New Delhi and also sponsored its employees for various Inter-CPSU sports tournaments such as Badminton, Table Tennis, Volley Ball, Kabaddi, Chess etc., organized by various power sector CPSUs under the aegis of Power Sports Control Board (PSCB). Further, employees were encouraged to participate in various quizzes, paper presentations and simulation competitions conducted by reputed institutions.

16.4 Representation of Women Employees

As on March 31, 2019, the Company had 78 permanent women employees, which represent 16.01 % of the total workforce. There is no discrimination of employees on the basis of gender. A Women Cell has been in operation in the Company to look after welfare and all round development of women employees. International Women's Day was celebrated by REC Women's Cell.

16.5 Industrial Relations

The Industrial Relations scenario in the Company continued to be cordial and harmonious in the financial year 2018-19. There was no loss of man days on account of industrial unrest. Regular interactions were held with REC Employees Union and REC Officers Association on issues of employee welfare. This has helped to build an atmosphere of trust and cooperation resulting in a motivated workforce and continued improvement in business performance. Wage negotiations for non-executives effective from January 1, 2017 was successfully concluded.

16.6 Public Grievance Redressal Machinery

In accordance with the guidelines issued by the Government of India, the Company has constituted a Grievance Redressal Committee to redress the grievances of employees.

17. CORPORATE SOCIAL RESPONSIBILITY& SUSTAINABLE DEVELOPMENT

The Company has its 'Corporate Social Responsibility & Sustainability Policy' aligned with the provisions of Companies Act, 2013. The Companies (Corporate Social Responsibility Policy) Rules, 2014 and Guidelines for CSR and Sustainability for Central Public Sector Enterprises issued by Department of Public Enterprises, was effective from July 11, 2017. The copy of the 'REC Corporate Social Responsibility & Sustainability Policy' is available on the website of the Company.

During the financial year 2018-19, the Corporate Social Responsibility and Sustainable Development (CSR & SD) initiatives of the Company were continued with a view to integrate REC's business operations with social processes while recognizing the interests of its stakeholders. CSR & SD projects were linked with the principle of sustainable development. The strategic focus was aimed at CSR & SD initiative towards fulfilling the National Plan goals and objectives including Sustainable Development Goals ensuring gender sensitivity, skill enhancement, entrepreneurship and employment generation by co-creating value with local institutions/people. While identifying such initiatives, the Company has adopted an integrated approach to address the community, societal and environmental concerns measured in terms of triple bottom line approach. During the year, the Company has undertaken various CSR initiatives in the fields of health care including for old age and persons with disabilities, drinking water and sanitation facilities, skill development program, education, environmental Sustainability, rural development program, etc. The CSR strategy has been developed with action plan in project-based accountability approach. The CSR activities have been implemented in project-mode, with baseline survey, specified time-frame, identified milestones, periodic monitoring and impact assessment. Disbursement of allocated funds under CSR was linked with achievement of the milestones and deliverables. During the financial year 2018-19, financial assistance aggregating to Rs158.72 crore was sanctioned for various projects under Corporate Social Responsibility & Sustainable Development and Rs 103.39 crore was disbursed. A detailed Report on Corporate Social Responsibility and Sustainability Activities is annexed to this Report.

18. VIGILANCE ACTIVITIES

REC constantly endeavors to optimize probity and integrity among employees and promotes transparency, fairness and accountability in all operational areas. REC Vigilance Division primarily aims at Preventive Vigilance through review of policies, rotation/transfers of employees holding sensitive posts, review of Audit Reports, review of projects/tenders/contracts awarded, inspections of Regional Offices, review of Annual Property Returns (APRs), etc.

In compliance with the instructions of CVC/Ministry of Power (MoP), the matter of rotational transfers from the identified sensitive posts has constantly been pursued. Prescribed periodical statistical returns were also sent to CVC and MoP on time. Regular review of Audit Reports- Internal, Statutory & CAG Audit Reports were done. Review of projects/tenders/ contracts awarded and wherever deviations were observed, the matter had been taken up with concerned divisions, which led to strengthening of appraisal system/guidelines. Field inspections of Regional Offices and scrutiny of APRs had also been completed. The thrust on leveraging of technology had been continued, as a result information relating to loans, schemes, tenders, third party bills etc. are available online. It was ensured that information/policies like tenders, requisite forms, status of loan applications/third party payments, Fair Practice Code, Prevention of Fraud Policy, CSR Guidelines, Whistle Blower Policy, etc. are available on REC's website. Further, Shri P. V. Rao, Ex. IRS was appointed as Independent External Monitor (IEM) for REC & its Subsidiaries. The other activities include examination of pay fixation of Executives of the Company, follow up for rectification in recruitment policy& recruitments and examination of loans awarded to Independent Power Producers (IPP) and contracts awarded by IT Division.

Almost all tenders of the Company which are above Rs 2 Lakh were processed through E-Procurement mode. E-Reverse Auction is also done in cases where estimated value of procurement and quoted prices exceed certain parameters.

During the financial year 2018-19, one vigilance case which is minor in nature, was pending and no vigilance case was disposed off.

Observance of Vigilance Awareness Week

Your Company observed Vigilance Awareness Week from October 29, 2018 to November 3, 2018. During the week, REC administered Integrity Pledge, conducted various competitions i.e. Paragraph Writing, Just a Minute, Painting & Poem Writing for its employees and their family members. It had also organized a one-day workshop on ERP Audit and Data Analytics as well as a workshop on Contracts & Procurement. Inter School Poem Competition was organized at pan India level and Intra-School Paragraph Writing Competitions were held at three Schools in Delhi. Inter-College Debate Competition was also organized at Daulat Ram College, Delhi wherein students from more than 30 colleges of Delhi participated with great enthusiasm. Apart from this, various activities were also organized at Regional Offices of REC across India and its subsidiaries. Panel discussions /seminars were also organized at some Regional Offices and RECIPMT, Hyderabad.

New Initiatives

Integrity Club: REC under its' CSR activities has set up 29 Integrity Clubs in various parts of the country. Accordingly, various activities were organised for the students of REC. Integrity Club encourage them to collectively participate in fight against corruption. The purpose of promoting Integrity Club in Schools by REC is to inculcate moral values into the minds of young children, so that they grow up as a socially and morally responsible citizens of the country and also to develop them as warrior to collectively fight against the menace of corruption in India. During the year, Integrity Club schools had organized a range of competitions i.e. logo designing, cleanliness in my neighborhood, poem writing and paragraph writing, etc.

Magic Show: Vigilance Division had organised Magic Shows in sixteen schools, one college and also at the Registered Office, New Delhi. Through this programme, message of community mobilization and uniting people for fight against Corruption in an innovative& interesting way was communicated and was appreciated by one and all.

The performance of Vigilance Division was reviewed periodically by CVC, Board of Directors and CMD in addition to regular reviews undertaken by the CVO in accordance with the prescribed norms.

19. IMPLEMENTATION OF OFFICIAL LANGUAGE

Continuous efforts were made to promote the use of Hindi in official work during the year 2018-19, in terms of the Annual Programme issued by the Department of Official Language, Ministry of Home Affairs. Quarterly Meetings of Official Language Implementation Committee were conducted on regular basis to monitor and review the progress made in achieving the targets fixed in Annual Programme.

In order to encourage the use of Hindi amongst employees of the Company, a Hindi Fortnight was organized at Corporate Office during September 14, 2018 to September 28, 2018, wherein various competitions such as Hindi Quiz, India Business Quiz, Hindi Debate Competition, Extempore Speech Competition, Rajbhasha General Knowledge and Hindi Questionnaire Competition, etc. were organized. The participation of employees in all such events/competitions was encouraging and cash prizes were awarded to winners in different categories to encourage larger participation as also to motivate employees to increase the use of Hindi in their day to day working. Hindi Fortnight was also organized in all Regional/State offices of the Company/RECIPMT on the said dates.

Your Company has taken a new initiative of organizing Official Language Conferences every year. Under this initiative, two days Official Language Conference was organized from November 26, 2018 to November 28, 2018 in Shillong, wherein identified Nodal Hindi Officers participated.

Further, Hindi workshops were also conducted in REC offices which provided hands-on exposure to participants in discharge of their official duties in which a number of Executives/Non-Executives participated.

A team of officials of Ministry of Power also reviewed the status of Official Language implementation in REC Registered Office and Regional Offices of Chennai, Panchkula, Kolkata, Mumbai and Shillong. Further, in orderto achieve the targets laid down in the annual programme issued by the Department of Official Language, Ministry of Home Affairs, internal inspections of different divisions and Regional Offices/State Offices were also carried out to assess the progressive use of Hindi in official work.

The new issues of 'Urjayan', in house Hindi journal of the Company have been published which contained interesting and useful articles as well as literary writings by the employees. In order to motivate employees for increased contributions in the form of Hindi write ups, articles, poems, etc. for the magazine, cash incentives were also awarded.

20. PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS& OUTGO.

20.1 Conservation of Energy

There are no significant particulars, relating to conservation of energy and technology absorption as your Company does not own any manufacturing facility. Further, the Registered Office of the Company is located at 'SCOPE Complex' where all civil, electrical installation & maintenance is carried out by SCOPE. Effective monitoring, controlling & scheduling the operation of AC chilling units, elevators & by putting other energy efficient equipments and making provision of additional 100 KWp Solar Power Plant at Terrace and also putting of the Movement/Occupancy Sensor as well as maintaining power factor nearest to unity, SCOPE has saved around 4.86 Lakh units consumption during the financial year 2018-19 over the previous year 2017-18, resulting saving in terms of amount of around Rs 53.22 Lakh.

20.2 Foreign Exchange Earnings & Outgo

During the financial year 2018-19, there was no earning in foreign exchange. Further, the foreign exchange outflow aggregating Rs 2,925.53 crore was made during the financial year on account of interest, principal repayment, finance charges, foreign travelling, training expenses, architectural services and other expenses.

21. SUBSIDIARY COMPANIES

Your Company has two Wholly Owned Subsidiaries, to focus on additional business of consultancy in the areas of distribution, transmission etc.:

21.1 REC Power Distribution Company Limited (CIN: U40101DL2007GOI165779)

During the financial year 2018-19, the performance of RECPDCL has been consistent in its core business viz. Preparation of Detailed Project Reports (DPR), Third Party Inspection (TPI), Material Inspection & Project Management Consultancy (PMC) and Project Management Agency/Project Management Consultant under DDUGJY and IPDS. As on March 31, 2019, RECPDCL has been working in about 96 on-going projects with estimated project cost of over Rs 80,000 crore and estimated consultancy fee of Rs1,158 crore spread in 46 Nos. of DISCOMs/Power Departments/Co-operative Societies, 27 States and 4 Union Territories.

During the financial year 2018-19, RECPDCL has achieved a total revenue of Rs159.77 crore against previous year revenue of Rs 206.95 crore and the Prof it After Tax of Rs 26.34 crore against the previous year Prof it After Tax of Rs 34.94 crore.

As on March 31, 2019, the Net Worth of the Company was Rs 155.73 crore as compared to Rs 156.57 crore in the previous year. Earnings Per Share (EPS) of Rs 10/- each for the financial year ended March 31, 2019 was Rs 5,268/- as against Rs 6,988/- in the previous year. An interim dividend of Rs 2,300/- (Rupees Two Thousand Three Hundred Only) per equity share (on the face value of Rs 10/-each) aggregating to Rs 11.50 crore was paid in the month of March, 2019.

21.2 REC Transmission Projects Company Limited (CIN:U40101DL2007GOI157558)

In order to initiate development of each independent Interstate and Intrastate a transmission project allocated by Ministry of Power, Government of India and State Governments, RECTPCL incorporated a Project specific Special Purpose Vehicle (SPV) for each such project as Wholly Owned Subsidiary Company and after selection of successful bidder through a two stage Bidding process featuring separate Request for Qualification (RfQ) and Request for Proposal (RfP) in accordance with Tariff Based Competitive Bidding guidelines for transmission projects as notified by Ministry of Power, Government of India, the respective Project Specific SPV along with its all assets and liabilities is transferred to the selected bidder.

During the financial year 2018-19, the following two project specific companies for Intra-State Transmission Projects allocated by U.P. Power Transmission Corporation Limited (UPPTCL) have been transferred to the selected bidder:

SI. No.

Name of Transmission Project

Name of Project Specific SPV

Name of Selected Bidder

Date of Transfer of project specific SPV

1.

Evacuation of Power from 3X660 MW Ghatampur Thermal project

Ghatampur Transmission Limited

Adani Transmission Limited

June 19, 2018

2.

Evacuation of Power from 2 x 660 MW Jawaharpur Thermal Power Project and construction of 400 kV substation at Firozabad along with associated Transmission Lines

Jawaharpur Firozabad Transmission Limited

Power Grid Corporation of India Limited

December 21, 2018

Further, RECTPCL is acting as Bid Process Coordinator for Inter-State transmission projects viz. (i) 400 kV Udupi (UPCL) - Kasargode D/C line; (ii) Construction of Ajmer (PG)-Phagi 765 kV D/C line along with associated bays for Rajasthan SEZ; (iii) Western Region Strengthening Scheme - 21 (WRSS-21) Part-A- Transmission System Strengthening for relieving over loadings observed in Gujarat Intra-State System due to RE Injections in Bhuj PS; (iv) Transmission System associated with RE generations at Bhuj-ll, Dwarka & Lakadia; (v) Jam Khambaliya Pooling Station and Interconnection of Jam Khambaliya Pooling Station for providing connectivity to RE Projects (1500 MW) in Dwarka (Gujarat) and Installation of 400/220 Kv ICT along with associated bays at M/s CGPL Switchyard; and (vi) Transmission system associated with LTA application from Rajasthan SEZ (Part -C).

Further, RECTPCL is also acting as Bid Process Coordinator for Intra-State transmission projects viz. (i) Transmission System Strengthening in Jharkhand State (Package-1 to 4); (ii) Intra-State Transmission work associated with construction of 400 kV substation near Guna (Distt.-Guna)& Intra-State Transmission work associated with construction of 220 kV S/s near Bhind (Distt.-Bhind); and (iii) Construction of 765/400/220kV CIS Substation, Rampur and 400/220/132kV CIS Substation, Sambhal with associated Transmission Lines

For all the above Inter-State and Intra-state transmission projects, RECTPCL has incorporated separate project specific SPV Company, as subsidiaries. Further, a project specific Special purpose vehicle i.e. Dinchang Transmission Limited was incorporated on December 2, 2015 for Transmission System for Phase-1 Generation Projects in Arunachal Pradesh, has been de-notified by Ministry of Power vide Gazette Notification dated February 1, 2019.

RECTPCL under the guidance of Ministry of Power, Government of India has developed online web platform and Mobile App for better Transparency & Accountability i.e. Urja Mitra, Tarang (Transmission App for Real Time Monitoring& Growth), 11 kV Rural Feeder Monitoring Scheme, etc. and handled various other assignments on behalf of its clients.

During the financial year ended March 31, 2019, RECTPCL has recorded an income of Rs 40.45 crore as compared to Rs 53.13 crore in the previous year. The Profit Before Tax and Profit After Tax for the financial year 2018-19 is Rs 32.21 crore and Rs 24.60 crore, respectively. The Net worth of the Company as on March 31, 2019 was Rs 118.44 crore against initial capital of Rs 0.05 crore injected by REC Limited (holding company) in the year 2007. Further, an Interim dividend of Rs 6,600/- per equity share on the paid up equity share of Rs 10/- each for the financial year 2018-19, aggregating to Rs 33 crore, was paid in the month of March, 2019.

21.3 Amalgamation of RECTPCL with RECPDCL

In order to have better operational efficiency and to reap the benefits of higher capital base & pooled resources, it was proposed to merge two unlisted wholly owned subsidiary companies of REC Limited i.e. RECPDCL and RECTPCL into one single entity.

Accordingly, as per provisions of the Companies Act, 2013 and rules made thereunder, an application was filed with the Ministry of Corporate Affairs (MCA) in March 2018, subject to approval of Ministry of Power for sanction of Scheme of Arrangement for amalgamation of RECTPCL (Transferor Company) with RECPDCL (Transferee Company).

However, Ministry of Power, the Administrative Ministry, looking at broader prospect decided to discuss the issue with various stakeholders and keeping in mind the integration of REC & PFC into single company, decided that merger of RECTPCL and RECPDCL, will be premature at this juncture. Therefore, the merger of RECTPCL with RECPDCL was not persued further.

22. DETAILS OF JOINT VENTURE AND ASSOCIATE COMPANY

REC, along with three other PSUs, namely Power Grid Corporation of India Limited, NTPC Limited and Power Finance Corporation Limited as partners, has formed a Joint Venture Company by the name Energy Efficiency Services Limited (EESL) on December 10, 2009. EESL is a Super Energy Service Company (ESCO). It acts as the resource center for capacity building for State Distribution Companies (DISCOMs), Energy Regulatory Commissions (ERCs), State Development

Authorities (SDAs), upcoming ESCOs, financial institutions, etc. REC has contributed Rs 146.50 crore (being 21.70% of paid-up capital of EESL) upto March 31, 2019.

EESL is formed to create & sustain market access of energy efficient technologies particularly in the public facilities like municipalities, buildings, agriculture, industry, etc. and to implement several schemes of Bureau of Energy Efficiency, Ministry of Power, MNRE, Government of India. EESL is also leading the market-related activities of the National Mission for Enhanced Energy Efficiency (NMEEE), one of the 8 national missions under National Action Plan on Climate Change. EESL today is implementing the largest energy efficiency portfolio in the world. EESL's energy efficient appliances and technologies have saved India over 40 billion kWh estimated energy annually.

Currently, EESL is implementing world's largest non-subsidy based LED lighting programme: Unnat Jyoti by Affordable LED for ALL (UJALA) Programme for distribution of LED bulbs, LED tube lights and Energy Efficient fans to domestic consumers, world's largest street light replacement programme: Street Lighting National Programme (SLNP) to replace conventional street lights with smart and energy efficient LED street lights in municipalities, National E-Mobility Programme to provide electric vehicles for Government entities on lease/outright purchase basis to replace the existing petrol and diesel vehicles taken on lease by various Government organizations, world's largest Agricultural Demand Side Management programme: AgDSM Programme for replacement of inefficient Agricultural Pump sets in agriculture sector, Building Energy Efficiency Programme (BEEP) to retrofit energy efficient appliances in buildings to make them energy efficient, Smart Meter National Programme (SMNP) to replace conventional meters with smart meters, Municipal Energy Efficiency Programme (MEEP) under AMRUT for implementation of energy efficient pump sets in public water works and sewage systems after approval of the ULB/ State Government, Solar Programme for implementing solar rooftop and decentralized small solar power plant, Atal Jyoti Yojna (AJAY) for installation of solar LED street lights in rural, semi-urban areas which don't enjoy adequate coverage of power, Solar Study Lamps (SoUL) for distribution of solar study lamps to school going children and also has developed Super-Efficient Air Conditioning Programme for providing Super-Efficient air conditioners to customers at affordable prices.

EESL has been awarded as Best Company (Public Sector) Award by the Forbes India Leadership Awards (FILA), 2018 on November 22, 2018.

The performance of EESL during the year has improved and the financial performance of the company is on the growth path. The turnover of the company has grown from Rs 5 crore in financial year 2012-13 to Rs 1,936 crore (Standalone) in the financial year 2018-19. During the financial year, Profit Before Tax was Rs 171 crore and the Profit After Tax was Rs 95 crore, as per the Standalone results for the financial year 2018-19.

23. CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to Section 129 of the Companies Act, 2013 & rules made thereunder and Indian Accounting Standards, the Company has prepared the Consolidated Ind-AS Financial Statements that includes its Subsidiary Companies i.e. RECTPCL & RECPDCL (Audited) and Joint Venture Company i.e. EESL (Un-audited), which shall also be laid before the ensuing 50th Annual General Meeting along with the Standalone Financial Statements of the Company.

Pursuant to sub-section (3) of Section 129 of the Act, a statement containing the salient features of the financial statements of Subsidiaries/Associates and Joint Ventures in Form AOC-1 forms part of this Annual Report.

The Audited Ind-AS Financial Statements including the Consolidated Ind-AS Financial Statements and Audited Accounts of subsidiaries of the Company are available on the website of the Company at www.recindia.com. Further, these documents will be kept for inspection by any member or trustee of the holder of any debentures at the Registered Office of the Company. The Company will also make available copy thereof upon specific request by any member of the Company interested in obtaining the same.

24. DIRECTORS AND KEY MANAGERIAL PERSONNEL

Being a Government Company, the power of appointment of Directors on the Board of the Company is vested with the President of India acting through the Ministry of Power (MoP), Government of India. The remuneration of Directors and employees of the Company is fixed as per extant Guidelines issued by Department of Public Enterprises (DPE), from time to time. Further, the Part time Non Official Independent Directors are paid sitting fees, as decided by the Board of Directors from time to time (within the limits prescribed under the Companies Act, 2013) for attending the meetings of Board and Committees thereof. As per the norms of Government of India, the Government Nominee Director is not entitled to receive any remuneration/sitting fee from the Company. The details of remuneration/sitting fees paid to Directors are given in Corporate Governance Report annexed to this report.

As per the provisions of the Companies Act, 2013, the Board of Directors of the Company has designated the Chairman and Managing Director (CMD), Director (Finance), Director (Technical) and Company Secretary as Key Managerial Personnel (KMPs) of the Company. The role of CEO and CFO is being performed by the CMD and Director (Finance) of the Company, respectively.

Further, in line with the statutory requirements, all the Independent Directors have given the requisite declaration that they meet the criteria of independence and none of the Directors are related inter-se.

The Ministry of Power, Government of India vide its Order No. 20/6/2017-Coord. dated July 17, 2018, has appointed Dr. Bhagvat Kisanrao Karad (DIN: 00998839) as part-time Non-Official Independent Director on the Board of REC for a period of three years from the date of notification of his appointment or till further orders, whichever is earlier. Further, the Ministry of Power, vide its Order No. 20/6/2017-Coord. dated November 22, 2018 has re-appointed Shri A. Krishna Kumar and Prof. T.T. Ram Mohan as Part time Non Official Independent Directors on the Board of REC for a further period of one year from the date of completion of their earlier tenure or until further orders, whichever is earlier.

During the year, pursuant to the Order No. 46/8/2011-RE dated March 5, 2019 of the Ministry of Power, Government of India, Dr. P V Ramesh, IAS, has relinquished the charge of CMD, REC to join as Director General, National Archives of India, Ministry of Culture & ceased to be CMD of the Company w.e.f. March 6, 2019. Further, the Ministry of Power, Government of India, vide its Order No. 46/8/2011-RE dated March 6, 2019 has assigned the additional charge of the post of Chairman & Managing Director of the Company to Shri Ajeet Kumar Agarwal, Director (Finance) of the Company with effect from March 6, 2019.

The Ministry of Power, Government of India vide its Letter No. 27-46/1/2018-RE dated June 6, 2019 and in terms of Clause 5.1 of Share Purchase Agreement entered between President of India, acting through Ministry of Power, Government of India with Power Finance Corporation Limited (PFC), has appointed Shri Praveen Kumar Singh (DIN 03548218) as Nominee Director of PFC, on the Board of REC Limited with effect from June 18, 2019.

In accordance with the provisions of the Companies Act, 2013 and Article 91 (iv) of the Articles of Association of the Company, Shri Ajeet Kumar Agarwal (DIN: 02231613), Director (Finance) shall retire by rotation at the 50th Annual General Meeting of the Company and being eligible, offers himself for re-appointment. The Board of Directors recommends his re-appointment as a Director till his superannuation due on May 31, 2020. His brief resume is annexed to the Notice of the AGM.

25. EVALUATION OF BOARD OF DIRECTORS/INDEPENDENT DIRECTORS

As per the statutory provisions, a listed company is required to disclose in its Board's Report, a statement indicating the manner in which formal annual evaluation of the performance of the Board, its Committees and individual Directors has been made and the criteria for performance evaluation of Independent Directors, as laid down by Nomination and Remuneration Committee.

However, Ministry of Corporate Affairs vide its notification dated June 5, 2015 has inter-alia exempted the Government Companies from the above requirement in case the Directors are evaluated by the Ministry or Department of the Central Government which is administratively in charge of the Company, as per its own evaluation methodology. Further, MCA vide Notification dated July 5, 2017, also prescribed that the provisions relating to review of performance of Independent Directors and evaluation mechanism, prescribed in Schedule IV of the Companies Act, 2013, is not applicable to Government Companies.

Accordingly, REC being a Government company is exempted in terms of above notifications as the evaluation of performance of all the members of the Board of the Company is being done by the administrative Ministry i.e. Ministry of Power and the Department of Public Enterprises (DPE).

During the financial year 2018-19, the performance evaluation of the Non-Executive Independent Directors of the Company was carried out by the Department of Public Enterprises (DPE)/Administrative Ministry, as per their internal guidelines.

Further, your Company also enters into Memorandum of Understanding (MoU) with its holding company, demarcating key performance parameters for the Company, finalised in consultation with Ministry of Power, Government of India and the performance of the Company is evaluated vis-a-vis MoU parameters.

26. DIRECTORS' RESPONSIBILITY STATEMENT

With reference to Section 134(5) of the Companies Act, 2013, it is confirmed that:

(i) in the preparation of the annual accounts for the year ended March 31, 2019, the applicable Accounting Standards have been followed and no material departures have been made from the same;

(ii) such accounting policies have been selected and applied consistently (considering the implementation of Indian Accounting Standards during the current year) and judgments and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

(iii) proper and sufficient care is taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) the annual accounts have been prepared on a going concern basis;

(v) internal financial controls have been laid to be followed by the Company and such internal financial controls were adequate and operating effectively;

(vi) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

27. MoU RATING AND AWARDS

The performance of the Company in terms of MoU signed with the Ministry of Power, Government of India for the financial year 2017-18 has been rated as Very Good.

During the year, REC has received the Dalai Street Investment Journal Award for Highest Employee Efficiency Enterprise, Golden Peacock Awards 2018 for Corporate Governance, CIMSME Banking Excellence Award, Dun & Bradstreet PSU Awards 2018 for Financial services, Award for Best PSU Issuer on Electronic Bidding Platform of NSE and India Smart Grid Forum (ISGF) Innovation Awards 2019 for Best Household Electrification Programme, SAUBHAGYA.

28. THINK GREEN, GO GREEN' INITIATIVE

The Companies Act, 2013 permits companies to send documents like Notice of Annual General Meeting, Annual Report and other documents through electronic means to its members at their registered email addresses, besides sending the same in physical form.

As a responsible Corporate Citizen, the Company has actively supported the implementation of 'Green Initiative' of Ministry of Corporate Affairs (MCA) and effected electronic delivery of Notices and Annual Reports to those share holders whose email ids were already registered with the respective Depository Participants (DPs) and who have not opted for receiving such documents in physical form. The intimation of dividends (interim/final) is also being sent electronically to those shareholders whose email ids are registered.

Members, who have not registered their e-mail addresses so far, are requested to register their e-mail address with the Registrar and Share Transfer Agent (R&TA) of the Company/Depository Participant (DP) of respective member and take part in the Green Initiative of the Company, for receiving electronic communications and support the THINK GREEN, GO GREEN initiative.

It is reiterated that upon receipt of requisition from the member including the members who have exercised the option of electronic delivery of these documents, every member of the Company is entitled to receive free of cost, a copy of the Balance Sheet of the Company and all other documents required by law to be attached thereto, including the Statement of Profit and Loss and Auditors' Report, etc.

Further, pursuant to Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014, the Company is providing e-voting facility to all members to enable them to cast their votes electronically in respect of resolutions set forth in the Notice of Annual General Meeting (AGM). The Company will also providing one way live webcast facility to all members to enable them to witness live proceedings of the AGM. The detailed instructions for e-voting and one-way live webcast are provided in the Notice of AGM.

During the financial year, the Company has also sent reminder letters to such shareholders, whose folios do not have or are having incomplete details with regard to PAN and Bank particulars, requesting them to furnish their PAN and Bank details to the Company for updation.

29. SWACHH BHARATABHIYAN

REC has organized Swachhta programmes under Swachhta Pakhwada - 2018 from May 16, 2018 to May 31, 2018. In Swachhta Pakhwada, REC organized various programme on Swachhta at Corporate office, all Regional Offices/State Offices of the Company. During the cleanliness programmes various activities i.e. installation of additional dustbins in five Regional Offices (Kolkata, Bhopal, Hyderabad, Jaipur & Raipur), installation of big hoardings with Swachhta Message at all ROs/SOs, organizing of Nukkad Nataks at slum area of Delhi & NCR region were conducted and banners & posters were fixed in and around office premises to spread awareness among employees and general public.

Further, all employees of REC participated with great enthusiasm and zeal& undertook special cleanliness drive of their respective office premises, toilets, stairs, lifts & other surroundings. Old and unwanted records have been weeded out as per Record Retention Policy. In this process, REC has sold e-waste of approx. 4,500 kg of papers, magazines, periodicals and draft reports etc. to e-waste recyclers and old & unwanted furniture fixtures and other waste were also weeded out.

Printing of logo of Swachh Bharat Mission on all file covers, envelops and letter heads of the Company still continues in REC, for creating awareness about cleanliness. Cleanliness is continuous process and it will continue in REC. In addition to above, REC has installed an Electric Crematorium in Ghaziabad and adopted a Temple Sir Baraichha Dham under Swachh Tirthsthal Abhiyan in Kerakat Tehsil of District Jaunpur, Uttar Pradesh.

30. RIGHT TO INFORMATION ACT, 2005

Your Company has taken necessary steps for the implementation of Right to Information Act, 2005 (RTI) in the Company and an independent RTI Cell is functioning for coordinating the work relating to receipt of applications & appeals and furnishing the information & disposal off appeals. RTI Handbook, both in English and Hindi, has been placed on REC website.

The status of RTI applications and appeals durina the financial year 2018-19 is as follows:

SI. No.

Particulars

Nos.

1.

Applications received

553

2.

Applications disposed off

530

3.

Applications disposed off subsequently

23

4.

First Appeals received by Appellate Authority, REC

33

5.

First Appeals disposed off by Appellate Authority, REC

31

6.

Second Appeals received from Central Information Commission (CIC)

1

7.

Second Appeals disposed off by Central Information Commission (CIC)

1

31. REPORTING UNDER PUBLIC PROCUREMENT POLICY FOR MICRO & SMALL ENTERPRISES (MSEs) ORDER, 2012.

The guidelines for MSMEs as defined in the purchase procedure is being followed in the Company. As REC's endeavor to foster the Government's ambitious initiatives for the promotion of MSME sector and in order to surpass the prescribed public procurement norms revised with effect from November 2018, REC has already made it mandatory to procure 100% of certain common use Goods/Services valuing upto Rs 10 Lakh from MSME Vendors and also to allow Price Preference upto 50% to MSEs out of which 20% is reserved for SC/ST and Women Vendors. REC encourages participation of Micro, Small and Medium Enterprises (MSMEs) including Micro and Small Enterprises owned by SC/ST.

Further, REC is already registered at GeM, Sambandh and Samadhan Portals and effectively using the same. Recently, REC got itself registered on TReDS and is poised to let felt its presence on this ambitious forum for Bill Discounting by MSME Vendors. Moreover, REC is proud to announce that it also partnered the FICCI's Vendor Development Program (VDP) held on March 20, 2019 at Chandigarh and CN's VDP held on March 22, 2019 at Surat which was overwhelmingly attended and appreciated by one and all from the Industry.

REC being a non-banking financial institution, is not into execution of projects. Hence, our procurement needs are mainly of office equipment like computers, printers, consumable stationery and other miscellaneous items & services, etc. which are mostly bought from MSME vendors. Thus, during the financial year 2018-19, procurement amounting to Rs 6.03 crore were made from MSEs.

REC Public Procurement Policy for MSME is included in all the tenders hosted on the website of the Company at www.recindia.com and CPPP portal.

32. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

In line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013, an 'Internal Complaints Committee' has been constituted in the Company for redressal of complaint(s) against sexual harassment of women employees. The committee is headed by a senior woman official of the Company and includes representative from an NGO as one of its members. Anti-sexual harassment stance of the Company is also outlined in REC (Conduct, Discipline and Appeal) Rules.

During the financial year 2018-19, the Company did not receive any complaint of sexual harassment.

33. EXTRACT OF ANNUAL RETURN

Pursuant to Section 92(3) of Companies Act, 2013 read with Rule 12(1) of Companies (Management and Administration) Rules, 2014, an extract of Annual Return in Form MGT-9, is annexed to this report.

34. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

In compliance of the provisions of the Companies Act, 2013, the particulars of contracts or arrangements entered into by the Company with its related parties are disclosed in Form AOC-2, annexed to this report.

35. AUDITORS

Statutory Auditors

M/s G.S. Mathur & Co., Chartered Accountants (Firm Reg. No.: 008744N), New Delhi and M/s A.R. & Co., Chartered Accountants (Firm Reg. No.: 002744C), New Delhi, were appointed as Statutory Auditors of your Company for the financial year 2018-19 by the Comptroller and Auditor General (C&AG) of India. The Statutory Auditors have audited the Financial Statements of the Company for the financial year ended March 31, 2019.

Further, the appointment of the Statutory Auditors for the financial year 2019-20 is yet to be made by the Comptroller and Auditor General (C&AG) of India. Approval of the Members of the Company will be obtained in ensuing Annual General Meeting, to authorize the Board of Directors of the Company, to fix the remuneration of Statutory Auditors for the financial year 2019-20, as may be appointed by C&AG.

Secretarial Auditors

M/s Chandrasekaran Associates, Practicing Company Secretaries (Certificate of Practice No.3850), New Delhi were appointed as Secretarial Auditors of the Company for carrying out Secretarial Audit for the financial year 2018-19. In terms of Section 204 of the Companies Act, 2013 and Rules made thereunder, they have issued Secretarial Audit Report for the financial year 2018-19 and the same is annexed to this Report.

35.1 Management's Comments on the Auditors' Report

Though, auditors have not given any qualifications, reservations, adverse remarks or disclaimers in their report on standalone and consolidated financial statements of the Company but they have made certain observations on further strengthening of the internal financial controls. Accordingly, the auditor observations and Management Reply to the observations of the Statutory Auditors is as under:

Observation of Statutory Auditors

Management's Reply

Annexure-C to the Independent Auditors' Report referred under 'Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)' of Independent Auditors' Report on Standalone Ind-AS Financial Statements.

In our opinion, the Company has, in all material aspects, an adequate internal financial controls system, except (i) strengthening of procedures for monitoring of utilization of funds disbursed to the borrowers, (ii) rotation of duties amongst some of the staff as per HR Policy to be implemented, over financial reporting.

Efforts are being made to further strengthen the internal control in the said areas.

Annexure-A to the Independent Auditors' Report referred under 'Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)' of Independent Auditors' Report on Consolidated Ind-AS Financial Statements.

In our opinion, the holding company, its subsidiaries and jointly controlled entity, which are companies incorporated in India, have, in all material aspects, an adequate internal financial controls system except (i) strengthening of procedures for monitoring of utilization of funds disbursed to the borrowers, (ii) rotation of duties amongst some of the staff as per HR Policy to be implemented, (iii) improvement in the system of allocation of common expenses by subsidiaries to its associates (SPV's), (iv) procedure to obtain periodical balance confirmation and timely obtaining Internal Audit Report and compliances thereon by subsidiaries, over financial reporting.

Efforts are being made to further strengthen the internal control in the said areas. Further, the issues have also been discussed with the subsidiaries for appropriate changes in the system of allocation and the procedures to obtain periodical balance confirmations.

The Secretarial Auditors of the Company have given an unqualified report for the financial year 2018-19. However, they have one observation relating to composition of Board of Directors. The Management's Reply to the observation is as under:

36. COMMENTS OF C&AG OF INDIA

The Comptroller and Auditor General (C&AG) of India, vide letter dated July 16, 2019 has given 'Nil' Comments on the Audited Financial Statements of the Company for the year ended March 31, 2019 under Section 143 (6) (a) of the Companies Act, 2013. The Comments of C&AG for the financial year 2018-19, have been placed along with the report of Statutory Auditors of the Company elsewhere in this Annual Report.

37. DEBENTURE TRUSTEES

In compliance to the requirements of SEBI (LODR) Regulations, 2015, the details of Debenture Trustees appointed by the Company, for different series of Bonds issued by the Company, from time to time, is annexed to this report.

38. STATUTORY DISCLOSURES

a) There was no change in the nature of business of the Company during the financial year 2018-19.

b) The Company has not accepted any public deposits during the financial year 2018-19.

c) No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and Company's operations in future.

d) The Company maintains an adequate system of Internal Control including suitable monitoring procedures to ensure accurate and timely financial reporting of various transactions, efficiency of operations and compliance with statutory laws, regulations and Company policies. For details, please refer to the 'Management Discussion and Analysis' Report annexed to this report.

e) Information on composition, terms of reference and number of meetings of the Board & its Committees held during the year, establishment of vigil mechanism/whistle blower policy and web-links for familiarization/training policy of Directors, Policy on Materiality of Related Party Transactions and Dealing with Related Party Transactions and Policy for determining Material Subsidiaries, Compensation to Key Managerial Personnel, Sitting fees to Independent Directors, etc. have been provided in the Report on Corporate Governance, prepared in compliance of provisions of SEBI (LODR) Regulations, 2015, as amended from time to time, which forms part of the Annual Report.

f) Pursuant to Section 186(11) of the Companies Act, 2013, loans made, guarantees given or securities provided by a company engaged in the business of financing of companies or of providing infrastructural facilities in the ordinary course of its business are not applicable to the Company, hence no disclosure is required to be made. Further, the details of investments are given at Note No. 9 of Notes to Accounts to Standalone Financial Statements.

g) Since the provisions of Section 197 of the Companies Act, 2013 and Rules made thereunder, related to Managerial Remuneration, are not applicable to Government Companies, no disclosure is required to be made.

h) There are no material changes and commitments, affecting the financial position of the Company which has occurred between the end of the financial year i.e. March 31, 2019 and the date of this report.

i) The Company has not issued any stock options to the Directors or any employee of the Company.

Observation of Secretarial Auditors

Management's Reply

During the period under review the Company has generally complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above, including the provisions of Section 149 of the Companies Act, 2013 and read with regulation 17 of SEBI (Listing Obligation & Disclosure Requirements), Regulation, 2015, with respect to the composition of Board of Directors except from April 1, 2018 till July 16, 2018, due to non-appointment of one Independent Director.

REC is a Government Company and as per provisions of Article 91 of Articles of Association of the Company, the power of appointment of Directors on the Board of the Company is vested with the President of India, acting through the Ministry of Power.

During the financial year 2018-19, the composition of Board of Directors was in compliance with all the applicable provisions, except for a short period from April 1, 2018 till July 16, 2018, due to vacancy of an Independent Director, on account of resignation by Shri Arun Singh.

However, after the appointment of Dr. Bhagvat Kisanrao Karad as Independent Director w.e.f. July 17, 2018 by the Ministry of Power, the composition of the Board of the Company was in compliance with all the applicable statutory provisions.

j) The details related to vigilance cases, replies to audit objections and RTI matters, etc. are duly incorporated in this report, as required vide OM dated January 24, 2018 of the Ministry of Parliament Affairs, Government of India.

k) The Central Government has not prescribed the maintenance of cost records forthe products/services of the Company under Companies (Cost Records and Audit) Rules, 2014, read with Companies (Cost Records and Audit) Amendment Rules, 2014 prescribed by the Central Government under Section 148 of the Companies Act, 2013. Accordingly, Cost Accounts and Records are not required to be maintained by the Company.

39. STATUS OF CONSTRUCTION OF REC CORPORATE OFFICE BUILDING AT GURUGRAM

The construction of state-of-the-art office building at City Centre, Sector-29, Gurugram is being executed in full swing. The design of proposed building is conceived by architect M/s CWA (selected through Global Design Architectural Competition) to achieve GRIHA 5 Star rated Net Positive building having special features like fair finish white concrete surfaces, raised flooring, radiant cooling for slabs to reduce power consumption of air conditioning, IBMS, sensor controlled lighting, Bio-climatic facade with motorized blinds, solar PV, auditorium and other latest technological features.

M/s Telecommunications Consultants India Limited (A Government of India Enterprise) is Project Management Consultant of the project and M/s JMC Project (India) Limited is the contractor for the project, besides, 8 consultants/sub consultants are also working on the project. Giving utmost importance to the project, REC has appointed Indian Institute of Technology, Delhi for vetting of the structural design of the building.

Till April 30, 2019, RCC structure of the building is complete and glass facade envelop, interior, exterior development works are progressing in full swing including progress on allied services works. The project is in advance stage and it is expected to move into new office premises by early next year.

REC 'World Headquarter Building' project was recently awarded with three prestigious awards by GRIHA Council, Green Rating for Integrated Habitat Assessment for (i) Passive Architecture Design during 8th GRIHA Summit; (ii) Integrated Water Management; and (iii) Energy Management during 9th GRIHASummit, which will further help REC project in achieving GRIHA 5 Star rating.

40. STATUTORY AND OTHER INFORMATION REQUIREMENTS

Information required to be furnished as per the Companies Act, 2013 and SEBI (LODR) Regulations, 2015 and other applicable statutory provisions is annexed to this report as under:

Particulars

Annexure '

Management Discussion & Analysis Report

I

Report on Corporate Governance

II

Auditor's Certificate on Corporate Governance

III

Business Responsibility Report

IV

Secretarial Audit Report

V

Annual Report on CSR Activities

VI

Extract of Annual Return

VII

Particulars of Contracts or Arrangements with Related Parties

VIII

Details of Debenture Trustees appointed by the Company for different series of Bonds

IX

41. ACKNOWLEDGEMENTS

The Directors are grateful to the Government of India particularly the Ministry of Power, Ministry of Finance, Ministry of Corporate Affairs, NITI Aayog, DIPAM, DPE and the Reserve Bank of India for their continued co-operation, support and guidance in effective management of the Company's affairs and resources.

The Directors thank the State Governments, State Electricity Boards, State Power Utilities and other Borrowers for their continued support and trust in the Company.

The Directors also place on record their sincere appreciation for the continued support and goodwill of the esteemed shareholders, investors in REC Bonds, domestic and overseas Banks, Life Insurance Corporation of India, KfW of Germany and JICA of Japan in the fund raising programmes of the Company.

The Directors also thank M/s G.S.Mathur & Co. and M/s A.R & Co., Statutory Auditors, M/s Chandrasekaran Associates, Secretarial Auditors, other professionals and the Comptroller & Auditor General of India for their valued contribution.

The Directors also sincerely appreciate and thank all the employees of the Company for their valuable contribution and dedicated efforts in steering the Company to excellent performance for yet another year in succession.

 

For and on behalf of the Board of Directors

 

Akagarwal

 

Ajeet Kumar Agarwal

Place: New Delhi

CMD & Director (Finance)

Date : July 22, 2019

(DIN: 02231613)

TABLE -1: DETAILS OF SCHEMES SANCTIONED BY REC DURING THE FINANCIAL YEAR 2018-19

(Rs in Lakh)

SI. No.

Particulars/State

Generation

Renewable Energy

Transmission & Distribution

STL, MTL and Other Loans

State-wise Total

Nos. of Projects/ Schemes

Loan Amount

Nos. of Projects/ Schemes

Loan Amount

Nos. of Projects/ Schemes

Loan Amount

Nos. of Projects/ Schemes

Loan Amount

Nos. of Projects/ Schemes

Loan Amount

1

Andhra Pradesh

4

5,54,500.00

3

31,183.00

30

3,30,605.43

2

30,000.00

39

9,46,288.43

2

Bihar

0

0

0

0

54

2,89,226.24

4

49,000.00

58

3,38,226.24

3

Chhattisgarh

0

0

0

0

15

68,442.89

3

40,000.00

18

1,08,442.89

4

Haryana

0

0

0

0

75

1,46,522.42

2

65,000.00

77

2,11,522.42

5

Himachal Pradesh

1

620.00

1

205.02

27

25,212.58

0

0

29

26,037.60

6

Karnataka

3

1,13,009.00

1

1,531.48

54

3,10,960.20

6

1,75,000.00

64

6,00,500.68

7

Kerala

0

0

0

0

26

67,753.30

0

0

26

67,753.30

8

Madhya Pradesh

0

0

0

0

39

91,079.68

3

3,60,000.00

42

4,51,079.68

9

Maharashtra

33

1,77,438.00

1

1,00,000.00

42

10,95,224.56

7

2,35,000.00

83

16,07,662.56

10

Puducherry

0

0

0

0

2

802.09

0

0

2

802.09

11

Punjab

1

1,89,484.00

0

0

6

5,760.37

3

65,000.00

10

2,60,244.37

12

Rajasthan

1

1,50,000.00

0

0

79

5,40,715.44

4

1,25,000.00

84

8,15,715.44

13

Tamil Nadu

1

4,00,000.00

0

0

69

7,53,951.43

1

15,000.00

71

11,68,951.43

14

Telangana

5

10,60,161.00

3

2,00,000.00

66

1,10,001.13

1

15,000.00

75

13,85,162.13

15

Tripura

0

0

0

0

8

737.49

0

0

8

737.49

16

Uttarakhand

0

0

0

0

21

49,584.88

0

0

21

49,584.88

17

Uttar Pradesh

2

4,15,274.00

0

0

146

7,92,092.70

0

0

148

12,07,366.70

18

West Bengal

0

0

0

0

22

71,357.76

2

30,000.00

24

1,01,357.76

19

Interstate Transmission Projects (State Sector) *

0

0

0

0

0

1,998.00

0

0

0

1,998.00

20

Interstate Transmission Projects (Private Sector)

0

0

0

0

3

3,09,000.00

0

0

3

3,09,000.00

21

Private Sector

5

10,82,701.00

27

8,54,600.00

0

0

0

0

32

19,37,301.00

 

Total

56

41,43,187.00

36

11,87,519.50

784

50,61,028.59

38

12,04,000.00

914

1,15,95,735.09

* The Loan Amount represents additional loan sanctioned against earlier sanctioned projects.

TABLE-2: STATEMENT SHOWING DETAILS OF CATEGORY-WISE SCHEMES SANCTIONED BY REC DURING THE FINANCIAL YEAR 2018-19

(Rs In Lakh)

SI. No.

Category

Category Code

No. of Schemes/ Projects

Loan Amount

A

Generation

 

 

 

1

Thermal

Thermal

36

17,53,803.00

2

Hydro

Hydro

8

2,14,723.00

3

Other Loans

-

12

21,74,661.00

 

Sub- Total (A)

 

56

41,43,187.00

B

Renewable Energy Projects

1

Solar PV Plants

Solar PV

14

3,19,281.48

2

Wind Plants

Wind

13

5,27,102.00

3

Small Hydro Plants

SHP

2

14,605.02

4

Others

-

7

3,26,531.00

 

Sub- Total (B)

 

36

11,87,519.50

C

Transmission & Distribution

 

Distribution

 

 

 

1

System Improvement

SI

191

9,69,237.07

2

Procurement & Installation of equipment/material

Bulk

81

2,44,519.23

3

Infrastructure for providing electricity access to various categories of Consumers

IE

53

3,63,395.43

4

SAUBHAGYA

SAUBHAGYA

52

4,90,242.52

5

R-APDRP/IPDS

R-APDRP/IPDS

46

1,06,739.62

6

DDUGJY

DDUGJY

70

3,01,370.35

 

Transmission

 

 

 

1

System Improvement

SI

284

13,56,524.37

 

Other Loans

 

 

 

1

Regulatory Assets

Regulatory Assets

1

6,00,000.00

2

SPL

SPL

3

3,20,000.00

3

Interstate Transmission Projects (Private)

-

3

3,09,000.00

 

Sub- Total (C)

 

784

50,61,028.59

D

STL, MTL & Other loan assistance (D)

38

12,04,000.00

 

Grand Total (A+B+C+D)

 

914

1,15,95,735.09

TABLE - 3: STATEMENT SHOWING DETAILS OF CUMULATIVE STATE-WISE SANCTIONS BY REC TILL THE FINANCIAL YEAR 2018-19

(Rs In Lakh)

SI. No.

Particulars/ State

Upto XI Plan

Upto XII Plan

During FY 2017-18

During FY 2018-19

Cumulative Upto 2018-19

No. of Projects

Sanctioned amount

No. of Projects

Sanctioned amount

No. of Projects

Sanctioned amount

No. of Projects

Sanctioned amount

No. of Projects

Sanctioned amount

1

Andhra Pradesh

6,472

29,50,749.60

476

39,97,771.16

58

10,80,951.14

39

9,46,288.43

7,045

89,75,760.33

2

Arunachal Pradesh

229

2,07,922.64

0

0

0

0

0

0

229

2,07,922.64

3

Assam

446

2,13,585.16

1

8,433.00

29

15,222.40

0

0

476

2,37,240.56

4

Bihar

1,815

19,16,710.03

42

7,68,317.98

6

3,25,217.00

58

3,38,226.24

1,921

33,48,471.25

5

Chhattisgarh

85

10,03,071.28

120

6,05,285.31

37

69,476.42

18

1,08,442.89

260

17,86,275.90

6

Delhi

9

4,11,847.00

16

86,506.24

0

0

0

0

25

4,98,353.24

7

Goa

16

2,007.00

4

69,273.58

0

0

0

0

20

71,280.58

8

Gujarat

1,950

15,08,268.25

5

9,29,532.00

0

0

0

0

1,955

24,37,800.25

9

Haryana

1,610

14,70,088.39

406

11,62,521.72

74

2,84,619.57

77

2,11,522.42

2,167

31,28,752.10

10

Himachal Pradesh

581

3,83,905.99

124

1,51,066.51

33

48,019.49

29

26,037.60

767

6,09,029.59

11

Jammu & Kashmir

603

3,23,091.49

43

1,04,416.77

1

3,17,912.86

0

0

647

7,45,421.12

12

Jharkhand

39

4,03,183.31

1

15,000.00

27

18,03,169.90

0

0

67

22,21,353.21

13

Karnataka

3,069

19,72,725.88

312

17,16,134.67

88

4,09,281.93

64

6,00,500.68

3,533

46,98,643.16

14

Kerala

1,771

5,89,522.34

91

5,78,880.25

15

64,488.94

26

67,753.30

1,903

13,00,644.83

15

Madhya Pradesh

5,499

14,43,675.30

103

6,46,937.93

27

5,21,698.13

42

4,51,079.68

5,671

30,63,391.04

16

Maharashtra

5,853

47,10,671.95

554

25,67,439.67

115

9,03,857.32

83

16,07,662.56

6,605

97,89,631.50

17

Manipur

151

39,327.86

15

22,488.00

5

15,578.93

0

0

171

77,394.79

18

Meghalaya

119

95,567.36

5

46,268.10

1

6,000.00

0

0

125

1,47,835.46

19

Mizoram

77

42,582.10

0

0

0

0

0

0

77

42,582.10

20

Nagaland

130

41,547.14

11

1,037.77

0

0

0

0

141

42,584.91

21

Odisha

1,700

6,06,516.94

26

7,25,154.20

0

0

0

0

1,726

13,31,671.14

22

Puducherry

2

12,506.79

3

11,627.15

0

0

2

802.09

7

24,936.03

23

Punjab

1,644

20,78,347.40

228

15,68,709.24

32

1,18,963.92

10

2,60,244.37

1,914

40,26,264.93

24

Rajasthan

4,058

38,41,487.31

203

28,95,420.69

64

7,90,755.27

84

8,15,715.44

4,409

83,43,378.71

25

Sikkim

42

11,636.90

0

1,887.00

0

0

0

0

42

13,523.90

26

Tamil Nadu

3,964

31 ,60,435.62

192

26,42,184.54

65

19,64,264.78

71

11,68,951.43

4,292

89,35,836.37

27

Telangana

0

0

203

30,85,903.69

71

4,42,931.70

75

13,85,162.13

349

49,13,997.52

28

Tripura

181

63,294.76

0

0

0

0

8

737.49

189

64,032.25

29

Uttarakhand

104

4,79,676.33

87

5,50,944.63

24

89,996.25

21

49,584.88

236

11,70,202.09

30

Uttar Pradesh

3,686

30,40,496.98

795

59,22,864.75

113

11,97,317.47

148

12,07,366.70

4,742

1,13,68,045.90

31

West Bengal

1,532

16,29,160.85

162

17,45,682.44

10

2,13,066.41

24

1,01,357.76

1,728

36,89,267.46

32

Private T&D

19

1,12,039.96

7

3,57,861.54

0

5,917.00

0

0

26

4,75,818.50

33

Private Generation

89

56,72,029.57

19

27,27,511.00

0

64,699.00

5

10,82,701.00

113

95,46,940.57

34

Private Renewable

0

0

41

3,09,263.99

0

0

27

8,54,600.00

68

11,63,863.99

35

Private STL

0

0

2

75,000.00

0

0

0

0

2

75,000.00

36

Interstate Transmission Projects (State Sector)

0

0

0

0

0

0

0

1,998.00

0

1,998.00

37

Interstate Transmission Projects (Private Sector)

0

0

0

0

0

0

3

3,09,000.00

3

3,09,000.00

 

Total

47,545

4,04,37,679.48

4,297

3,60,97,325.52

895

1,07,53,405.83

914

1,15,95,735.09

53,651

9,88,84,145.92

TABLE - 4: STATEMENT SHOWING DETAILS OF STATE-WISE AND PROGRAMME-WISE DISBURSEMENTS AND REPAYMENT BY BORROWERS DURING THE FINANCIAL YEAR 2018-19 AND OUTSTANDINGS AS ON MARCH 31, 2019

SI. No.

Particulars/State

Transmission

Distribution

Generation-Cove ntional

Generation-Renewable Energy

DDUGJY-RE, SAUBHAGYA (including DDG)

STL

Others

(MIL and TFL)

Total Disbursement for the year 2018-19

Disbursed upto the end of the year

Repayments

Outstanding at the end of the year 2018-19

During the year

Upto the end of year

1

Andhra Pradesh

1,30,488

57,061

2,05,344

1,96,118

25,109

-

30,000

6,44,120

43,01,779

3,40,988

21,43,002

21,58,777

2

Arunachal Pradesh

-

-

-

-

-

-

-

-

24,394

513

23,026

1,368

3

Assam

-

-

-

-

5,998

-

-

5,998

72,109

2,631

40,118

31,991

4

Bihar

14,023

19,998

86,229

-

54,320

29,000

20,000

2,23,570

16,69,755

2,10,006

4,42,323

12,27,432

5

Chhattisgarh

32,149

16,670

-

-

5,001

25,000

-

78,820

5,88,443

62,473

3,98,505

1,89,938

6

Delhi

-

-

-

-

-

-

-

-

1,093

-

1,093

-

7

Goa

-

-

-

-

-

-

-

-

1,479

-

1,479

-

8

Gujarat

-

-

-

-

-

-

-

-

9,19,008

27,560

6,85,101

2,33,907

9

Haryana

30,775

52,525

337

-

2,437

50,000

-

1,36,074

18,09,062

1,17,234

11,87,451

6,21,611

10

Himachal Pradesh

7,735

13,588

-

-

-

-

-

21,323

3,15,993

6,676

2,33,017

82,976

11

Jammu & Kashmir

-

627

-

950

729

-

-

2,306

1,42,868

8,393

1,17,716

25,152

12

Jharkhand

-

-

54,000

-

87,178

-

-

1,41,178

3,05,303

8,423

1,27,898

1,77,405

13

Karnataka

-

91,757

41,697

4,107

24,239

1,30,000

30,000

3,21,800

21,19,472

2,49,485

9,49,534

11,69,938

14

Kerala

557

44,003

-

-

-

-

-

44,560

8,60,634

70,528

5,43,338

3,17,296

15

Madhya Pradesh

15,451

1,21,236

-

-

1,03,572

-

2,00,000

4,40,259

15,01,432

27,103

8,54,992

6,46,440

16

Maharashtra

38,927

6,84,338

59,267

1,00,000

31,367

80,000

43,000

10,36,899

59,87,088

4,66,623

23,69,501

36,17,587

17

Manipur

513

-

-

-

158

-

-

671

39,273

6,795

21,923

17,350

18

Meghalaya

-

-

-

-

-

-

-

-

98,799

10,323

57,395

41,404

19

Mizoram

-

-

-

-

171

-

-

171

27,894

313

25,594

2,300

20

Nagaland

-

550

-

130

88

-

-

768

27,836

1,777

18,976

8,860

21

Odisha

-

-

64,868

-

9,785

-

-

74,653

5,33,051

2,609

1,40,875

3,92,176

22

Puducherry

899

-

-

-

-

-

-

899

8,096

357

1,071

7,025

23

Punjab

10,592

64,173

278

-

-

25,000

40,000

1,40,043

27,78,103

1,55,156

20,04,029

7,74,074

24

Rajasthan

1,31,053

2,92,030

2,19,992

-

47,976

15,000

1,25,000

8,31,051

61,54,284

1,51,277

30,33,646

31,20,638

25

Sikkim

1,043

-

9,466

-

-

-

-

10,509

5,47,259

38,471

42,708

5,04,551

26

Tamil Nadu

1,37,120

1,55,298

6,64,532

500

8,164

-

15,000

9,80,614

51,89,538

3,01,246

23,33,042

28,56,496

27

Telangana

4,74,183

1,33,221

2,64,548

2,00,000

3,315

15,000

-

10,90,267

33,79,780

2,13,684

7,41,890

26,37,890

28

Tripura

-

-

-

-

-

-

-

-

12,843

173

11,927

916

29

Uttarakhand

7,033

6,410

23,910

-

2,904

-

-

40,257

5,61,373

29,791

3,20,820

2,40,553

30

Uttar Pradesh

20,264

1,49,901

2,33,082

-

1,59,345

-

-

5,62,592

55,42,024

2,80,601

28,63,345

26,78,679

31

West Bengal

21,653

1,56,914

25,000

-

306

15,000

-

2,18,873

19,49,331

1,26,206

9,62,147

9,87,184

32

Private

1,683

-

5,614

1,60,971

-

-

-

1,68,268

46,76,096

1,23,094

13,27,042

33,49,054

 

Total

10,76,141

20,60,300

19,58,164

6,62,776

5,72,162

3,84,000

5,03,000

72,16,543

5,21,45,492

30,40,509

2,40,24,524

2,81,20,968

 

SUBSIDY

 

 

 

 

 

 

 

 

 

 

 

 

 

-DDUGJY

-

-

-

-

-

-

-

16,81,233

-

-

-

-

 

-SAUBHAGYA

-

-

-

-

-

-

-

2,70,883

-

-

-

-

 

-DDG

-

-

-

-

-

-

-

14,097

-

-

-

-

 

Grand Total

10,76,141

20,60,300

19,58,164

6,62,776

5,72,162

3,84,000

5,03,000

91,82,756

5,21,45,492

30,40,509

2,40,24,524

2,81,20,968

(Rs in Lakh)

TABLE - 5: STATEMENT SHOWING DETAILS OF FINANCIAL & PHYSICAL ACHIEVEMENTS DURING THE FINANCIAL YEAR 2018-19 UNDER DDUGJY (INCLUDING X, XI, XII, NEW DDUGJY & ADDITIONAL INFRASTRUCTURE PROJECTS)

 

State

Financial Parameters (Rs in crore)

Physical Parameters (Nos.)

Sanctions

Grant Release (for all Plans)

Sub-station (Including Augumentation) (Nos.)

Distribution Transformer (Nos.)

Feeder Segregation (Incl. 11 kV Line) (Ckm)

Grid projects (For Addl. Infra)

Off-Grid projects

Total

Grid projects (DDUGJY including X, XI, XII)

Off-Grid projects

Additional Infrastructure

Total

1

Andhra Pradesh

0

0

0

163.57

11.45

0

175.02

25

7,811

2,139

2

Arunachal Pradesh

292.13

0

292.13

30.14

9.79

120.00

159.93

0

150

228

3

Assam

1,493.57

0

1,493.57

545.52

36.13

506.24

1,087.89

41

16,649

8,829

4

Bihar

0

0

0

2,411.89

0

0

2,411.89

159

96,866

45,990

5

Chhattisgarh

83.64

0

83.64

56.26

7.31

15.06

78.63

76

18,175

6,731

6

Dadra & Nagar Haveli

0

0

0

0.90

0

0

0.90

0

0

21

7

Goa

0

0

0

3.27

0

0

3.27

0

0

0

8

Gujarat

0

0

0

180.96

0

0

180.96

36

6,650

3,951

9

Haryana

30.31

0

30.31

22.23

0

0

22.23

2

599

340

10

Himachal Pradesh

8.68

0

8.68

14.65

0

0

14.65

0

32

21

11

Jammu & Kashmir*

875.03

62.27

937.30

543.50

41.02

413.69

998.21

0

1,204

1,508

12

Jharkhand

1,077.70

0

1,077.70

1,185.44

0

0

1,185.44

77

36,459

18,263

13

Karnataka

126.74

0

126.74

450.27

1.23

176.53

628.03

7

7,388

11,506

14

Kerala

0

0

0

57.12

0

0

57.12

1

361

928

15

Madhya Pradesh

998.64

0

998.64

616.91

7.59

327.15

951.65

286

19,716

40,533

16

Maharashtra

368.92

0

368.92

316.67

0

165.47

482.14

159

32,785

7,893

17

Manipur

60.27

0

60.27

32.15

1.99

6.69

40.83

6

1,595

2,711

18

Meghalaya

381.33

0

381.33

81.87

0.69

72.39

154.95

3

0

0

19

Mizoram

31.65

0

31.65

19.67

0

14.93

34.60

5

40

122

20

Nagaland

28.31

0

28.31

36.99

0

18.26

55.25

0

84

262

21

Odisha

508.63

0

508.63

1,187.72

5.70

166.63

1,360.05

149

23,169

8,224

22

Puduchhery

0

0

0

0.01

0

0

0.01

0

0

0

23

Punjab

0

0

0

41.85

0

0

41.85

0

1,029

2,068

24

Rajasthan

1,219.21

0

1,219.21

904.31

12.91

329.08

1,246.30

155

86,862

34,862

25

Sikkim

37.36

0

37.36

21.11

0

0

21.11

0

5,659

0

26

Tamil Nadu

0

0

0

243.94

0

0

243.94

106

892

1,370

27

Telangana

0

0

0

60.78

0

0

60.78

58

8,877

1,869

28

Tripura

358.64

0

358.64

23.72

0

88.25

111.97

4

384

679

29

Uttarakhand

0

0

0

269.87

0

0

269.87

1

1,216

1,440

30

Uttar Pradesh

6,289.57

0

6,289.57

1,786.24

5.14

1,768.85

3,560.23

348

50,937

36,356

31

West Bengal

0

0

0

1,280.96

0

0

1,280.96

78

15,180

7,874

 

Total

14,270.33

62.27

14,332.60

12,590.47

140.97

4,189.22

16,920.66

1,782

4,40,769

2,46,717

Includes fund released against PMDP projects.

TABLE -6: STATEMENT SHOWING DETAILS OF CUMULATIVE ACHIEVEMENT UPTO MARCH 31, 2019 UNDER DDUGJY (including X, XI, XII, New DDUGJY & Additional Infrastructure Projects)

SI. No

State

Financial (Rs in crore)

Physical Progress

Sanctioned Project Cost*

Gol Grant released*

Substation 33/11 kV (Nos.)

Distribution Transformer (Nos.)

Feeder Segregation (CKm)

11 kV Line (Excluding Feeder Segregation)

New

Augmentation

1

Andaman & Nicobar

20.96

1.26

0

0

0

0

0

2

Andhra Pradesh

1,563.09

1,006.89

144

16

35,016

140

7,379

3

Arunachal Pradesh

1,748.46

1,202.89

22

1

3,695

0

9,947

4

Assam

7,302.80

4,729.08

36

66

55,020

0

47,079

5

Bihar

18,347.55

11,012.40

335

355

1,34,315

12,053

61,798

6

Chhattisgarh

3,274.29

2,042.50

84

168

31,855

938

17,213

7

Dadra & Nagar Haveli

5.00

0.90

0

0

0

0

21

8

Goa

20.00

3.27

0

0

0

0

0

9

Gujarat

1,239.75

775.41

15

28

21,372

1,512

10,345

10

Haryana

519.42

207.61

2

0

6,392

143

2,424

11

Himachal Pradesh

493.20

304.37

1

8

2,092

0

1,305

12

Jammu & Kashmir

2,581.89

1,916.96

20

16

5,383

0

4,099

13

Jharkhand

9,599.36

5,316.95

138

73

66,408

952

34,196

14

Karnataka

2,939.14

1,605.83

3

8

24,475

8,545

11,078

15

Kerala

703.22

423.71

4

8

2,404

0

3,147

16

Madhya Pradesh

8,263.48

4,474.35

153

449

79,111

6,068

60,115

17

Maharashtra

3,224.95

1,452.63

143

103

14,033

5,472

6,289

18

Manipur

787.88

500.94

16

6

1,888

0

3,681

19

Meghalaya

1,138.51

603.82

5

0

2,298

0

2,533

20

Mizoram

451.89

364.42

10

12

814

0

1,631

21

Nagaland

471.50

363.17

10

12

1,190

0

1,549

22

Odisha

9,377.59

6,320.26

44

330

69,016

586

31,136

23

Puducherry

20.16

1.22

0

0

0

0

0

24

Punjab

289.87

111.46

0

0

5,453

5

2,014

25

Rajasthan

6,735.45

3,622.31

148

20

1,22,295

3,710

43,268

26

Sikkim

299.49

210.92

0

0

404

0

608

27

Tamil Nadu

1,306.80

728.66

56

75

10,793

157

3,568

28

Telangana

782.30

412.39

89

0

19,228

0

5,244

29

Tripura

925.00

507.18

9

2

3,714

0

2,799

30

Uttarakhand

1,638.56

1,010.76

7

13

13,489

637

9,098

31

Uttar Pradesh

29,118.79

15,528.93

383

1,016

3,12,712

26,258

1,11,260

32

West Bengal

7,634.75

4,349.87

59

124

33,169

3,174

15,330

 

Total

1,22,825.10

71,113.28

1,936

2,909

10,78,034

70,350

5,10,154

* The Sanctioned Cost (closing balance) for the financial year 2017-18 was Rs 1,08,496.85 crore. During the financial year 2018-19 Rs 14,332.60 crore was sanctioned. The Cumulative Sanctioned cost as on March 31, 2019 is Rs 1,22,825.10 crore instead of Rs 1,22,829.45 crore, due to rounding off (reduction) of Rs 4.35 crore.

# There is an adjustment of Rs 42.07 crore in Fund released on account of price revision in project cost on closure.

Note: In the pervious year annual report, the fund released contains total fund including loan component. During the current year onwards, in above table only cumulative grant released till March 31, 2019 has been reported.

TABLE-7: STATEMENT SHOWING DETAILS OF HOUSEHOLDS ELECTRIFIED AND FUNDS DISBURSED UNDER SAUBHAGYA UPTO MARCH 31, 2019

SI. No

State

Balance Unelectrified Households as on October 10, 2017 (Including Additional households electrified) (Nos.)*

Household Electrified w.e.f October 11, 2017 (Nos.)

Balance Un-electrified Households (Nos.)

Cumulative Disbursement of Grant (Rs in crore)

2017-18

2018-19

Total

1

Andhra Pradesh

1,81,930

81,949

99,981

1,81,930

0

0

2

Arunachal Pradesh

47,089

0

47,089

47,089

0

138.87

3

Assam

17,45,149

1,10,836

16,34,313

17,45,149

0

444.71

4

Bihar

32,59,041

4,49,016

28,10,025

32,59,041

0

314.18

5

Chhattisgarh

7,68,131

1,55,490

5,93,907

7,49,397

18,734

261.81

6

Gujarat

41,317

15,748

25,569

41,317

0

0

7

Haryana

54,681

3,497

51,184

54,681

0

0

8

Himachal Pradesh

12,891

1,943

10,948

12,891

0

0.82

9

Jammu & Kashmir

3,87,501

0

3,87,501

3,87,501

0

53.24

10

Jharkhand

15,30,708

1,25,389

14,05,319

15,30,708

0

152.43

11

Karnataka

3,56,974

59,709

2,97,265

3,56,974

0

0

12

Kerala

0

0

0

0

0

15.20

13

Madhya Pradesh

19,84,264

11,49,748

8,34,516

19,84,264

0

407.47

14

Maharashtra

15,17,922

1,82,896

13,35,026

15,17,922

0

154.73

15

Manipur

1,02,748

746

1,02,002

1,02,748

0

40.71

16

Meghalaya

1,99,839

0

1,99,839

1,99,839

0

97.84

17

Mizoram

27,970

0

27,970

27,970

0

34.62

18

Nagaland

1,32,507

473

1,32,034

1,32,507

0

39.23

19

Odisha

24,52,444

1,35,348

23,17,096

24,52,444

0

244.77

20

Puducherry

912

0

912

912

0

0

21

Punjab

3,477

0

3,477

3,477

0

0

22

Rajasthan

18,62,736

2,12,555

16,50,181

18,62,736

0

102.94

23

Sikkim

14,900

0

14,900

14,900

0

0

24

Tamil Nadu

2,170

2,170

0

2,170

0

0

25

Telangana

5,15,084

23,803

4,91,281

5,15,084

0

0

26

Tripura

1,39,090

1,882

1,37,208

1,39,090

0

236.67

27

Uttarakhand

2,48,751

4,960

2,43,791

2,48,751

0

35.72

28

Uttar Pradesh

79,80,568

11,33,002

68,47,566

79,80,568

0

1,386.62

29

West Bengal

7,32,290

1,94,153

5,38,137

7,32,290

0

86.90

 

Total

2,63,03,084

40,45,313

2,22,39,037

2,62,84,350

18,734

4,249.47

' The States / DISCOMs have validated and updated the data/figures (dynamic) from time to time based on ground conditions. 

Director’s Report