--> -->

Rural Electrification Corporation Limited

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

The Rural Electrification Corporation Limited (REC) was incorporated as a company under companies Act. 1956 in 1969 with the main objective of financing rural electrification schemes in the country.

The current mission of REC is to facilitate availability of electricity for accelerated growth and for enrichment of quality of life of rural and semi-urban population and to act as a competitive, client-friendly and development oriented organization for financing and promoting projects covering power generation, power conservation, power transmission and power distribution network in the country.

Objectives

1 To promote and finance projects aimed at integrated system improvement, power generation, promotion of decentralized and non-conventional energy sources, energy conservation, renovation and maintenance, power distribution with focus on pump-set energisation, implementation of Government of India scheme for electrification of all villages and all households by 2009 and other related works in rural and urban areas.

2 To expand and diversify into other related areas and activities like financing of decentralized power generation projects, use of new and renewable energy sources, consultancy services, transmission, sub-transmission and distribution systems, renovation, maintenance and moderation, etc., for optimization of reliability of power supply to rural and urban areas, including remote, hill, desert, tribal, riverine and other difficult/remore areas.

3 To mobilize funds from different sources including raising of funds from domestic and international agencies and sanction loans to the State Electricity Boards, State Governments, Power utilities, rural electric cooperatives, Non-government organization (NGOs) and private developers.

4 Net profit of REC during 2004-05 was Rs. 801 crore, networth of the company is Rs. 3779 crore and loans disbursed during the year 2004-05 by REC was Rs. 7885 crore.

Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

A scheme “Rajiv Gandhi Grameen Vidyutikaran Yojana” for rural electricity infrastructure and household electrification has been launched for the attainment of the national common minimum programme of providing access to electricity to all rural household in five years. The scheme would be implemented through the rural electrification corporation (REC).

Under this scheme 90 percent capital subsidy would be provided for projects for:

1 Creation of rural electricity distribution backbone (REDB) with one 33/11 kV (or 66/11 kV) substation in every block appropriately linked to the state transmission system.

2 Creation of village electricity infrastructure (VEI) for electrification of all un-electrified villages/habitations and provision of distribution transformer.

3 Decentralised distributed generation (DDG) and supply system from conventional sources for villages/habitations where grid supply is not cost effective and where ministry of non-conventional energy sources would not be providing electricity through their programme(s).

The scheme inter alia provides for financing of electrification of all un-electrified below poverty line (BPL) households in the country with 100 percent capital subsidy as per norms of Kutir Jyoti Programme in all rural habitations.

For projects to be eligible for capital subsidy under this scheme prior commitment of the States would be taken before sanction of the projects for:

1 Deployment of franchisees for the management of rural distribution in projects financed under this scheme.

2 Provision of requisite revenue subsidy to state utilities as required under the electricity Act, 2003.

The states would also be required to make adequate arrangements for supply of electricity and there should be no discrimination in the hours of supply between rural and urban households.

The scheme the entire country and the funds would be released on the basis of sanction of the projects submitted. It is estimated that Rs. 16,000 crore would be required for the entire scheme. For phase-I of the scheme approved for implementation during the tenth five year plan period Rs. 5,000 crore has been provided by the central government as capital subsidy.

The scheme aims at completing electrification of all un-electrified villages and un-electrified hamlets in next five years.

This scheme merges the minimum needs programme for rural electrification, and scheme of “Accelerated Electrification of one lakh villages and one crore households”. 111 projects were sanctioned under accelerated electrification of one lakh villages and one crore households during the 2004-05 covering 114 district and 54,159 un-electrified villages and 23,45,412 un-electrified hamlets.

Amount disbursed for below poverty line (BPL) household during the year 2004-05 was Rs. 4134 lakh. Disbursements made under Kutir Jyoti Programme during 2004-05 were to the tune of Rs. 1741 lakh. Under PMGY, Rs. 24,470 lakh were disbursed during 2004-05. AREP subsidy was Rs. 36,561 lakh and AREP loan was Rs. 57,841 lakh during the year 2004-05.

As on 31 March 2004, total villages electrified are 4,74,982. As per new definition of villages electrification, there are 1,25,000 un-electrified villages. Number of electrified rural households are 60,180,682, i.e., 43.52 percent as per 2001 census.

Share This

Popularity: 26% [?]

Tags: conservation power, conventional energy sources, generation power, rajiv gandhi, renewable energy sources, Rural Electrification Corporation