Rural Electrification Corporation Limited (REC) is a Government of India initiative. It is a public sector enterprise with a net worth of Rs. 5368 crores. The company was incorporated in the year 1969 under the Companies Act 1956 by the Indian Government. The primary objective of the enterprise is to promote and finance various rural electrification projects spreading the entire country of India. The enterprise has rights to massive financial assistance to various Rural Electric Cooperatives, State Government Departments and State Electricity Boards.
The corporate office of the REC is situated in New Delhi & it has 17 field units which are evenly distributed all over the country. The various categories of electrification schemes financed by the Rural Electrification Corporation Limited can be cited as:
1.Household Electrification
2.Village Electrification – 2 types
3.Dalit Basti
4.Hamlet Electrification
5.Intensive Electrification
Some characteristic features of REC:
1.It finances all types of power generation projects, be it thermal, renewable energy etc.
2.In case of public sector power generation projects REC finances up to 80% of the project cost while in case of private sector power generation projects it finances up to 50% or 25% net worth of itself, whichever is less.
3.Till the year 2007-08 REC has sanctioned total loans amounting up to Rs. 58000 crores while it has disbursed Rs. 11685 crores.
As a Government initiative the enterprise has seen tremendous growth in its niche from the very starting. With the free economy and India’s bid to challenge the global giants in terms of development has opened up new avenues for Rural Electrification Corporation Limited. So, it will be nice decision for you if you plan to buy its stock in the trading arena. It has the potential to return you a good amount both in short term and long term investments. For that purpose you can request free stock market tips and analysis along with tailored business reports from this platform
Buy REC with target of Rs 303 and stop loss of Rs 270, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 292.70, up 1% on the BSE.