RURAL ELECTRIFICATION CORPORATION

rec:-choudhury-selected-for-director-post.

REC: Choudhury selected for Director post.

The public-sector headhunter on Wednesday selected Ajoy Choudhury for the post of Director (Finance), Rural Electrification Corporation (REC). Presently, he is working as Executive Director, REC.
Subject to requisite clearances and ACC approval he may replace A K Aggarwal; the outgoing Director (Finance) retiring May next year.

18 Dec 2019
rec-runs-selfie-contest-to-promote-integrity

REC Runs Selfie Contest to Promote Integrity

REC Ltd, a Navratna NBFC focusing on Power Sector Financing and Development across, ran a selfie contest on social media to observe ‘Vigilance Awareness Week 2019’. The campaign started by REC #RECIntegrityChallenge on Twitter, Facebook and Instagram encouraged contestants to upload selfies of their “Integrity Deed of the Day”. The objective was to promote integrity amongst individuals through the consistent practice of choosing the right act over the convenient. Around 400 people participated in the contest.

Entries were evaluated by an eminent jury and the winner will be awarded a cash prize of Rs 10,000 followed by runner ups and consolation prizes. REC Ltd, formerly Rural Electrification Corporation Limited, provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.

13 Nov 2019
rec:-choudhury-selected-for-director-post.

REC: Choudhury selected for Director post.

By IndianMandarins 18 Dec 2019

The public-sector headhunter on Wednesday selected Ajoy Choudhury for the post of Director (Finance), Rural Electrification Corporation (REC). Presently, he is working as Executive Director, REC.
Subject to requisite clearances and ACC approval he may replace A K Aggarwal; the outgoing Director (Finance) retiring May next year.

rec-runs-selfie-contest-to-promote-integrity

REC Runs Selfie Contest to Promote Integrity

By IndianMandarins 13 Nov 2019

REC Ltd, a Navratna NBFC focusing on Power Sector Financing and Development across, ran a selfie contest on social media to observe ‘Vigilance Awareness Week 2019’. The campaign started by REC #RECIntegrityChallenge on Twitter, Facebook and Instagram encouraged contestants to upload selfies of their “Integrity Deed of the Day”. The objective was to promote integrity amongst individuals through the consistent practice of choosing the right act over the convenient. Around 400 people participated in the contest.

Entries were evaluated by an eminent jury and the winner will be awarded a cash prize of Rs 10,000 followed by runner ups and consolation prizes. REC Ltd, formerly Rural Electrification Corporation Limited, provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.

nation-wide-swachhata-shramdaan:-rec-collects-and-recycles-500-kg-plastic-waste

Nation-Wide Swachhata Shramdaan: REC collects and recycles 500 KG plastic waste

By IndianMandarins 05 Oct 2019

REC Limited, a ‘Navratna’ financing company for the power sector, organised Shramdaan for plastic waste collection at all of its office locations across the country.

The Shramdaan for ‘Plastic Recycling’, led by REC CMD, Ajeet Agarwal; Director (Technical) S K Gupta and Chief Vigilance Officer Ms Sunita Singh, saw participation from the company’s employees. Close to 500 Kg of single-use plastic waste was segregated, collected and sent for recycling during the week-long drive which concluded on Gandhi Jayanti 2nd October 2019. REC also organised sessions and competitions for school children, installed dustbins and distributed cotton and jute bags at various locations during the week which concluded on Gandhi Jayanti on 2nd October.

To commemorate Mahatma Gandhi on its 150th birth Anniversary, CMD, Ajeet Agarwal along with the senior management paid floral tribute to the Mahatma at the SCOPE Convention Centre, New Delhi.

During the week long drive, single-use plastic was collected from the SCOPE Complex Area in New Delhi, Mylapore Market in Chennai, Gandhinagar Railway Station at Jaipur, Mahadev Ghat and Nagar Palika Public Garden in Raipur, Old Baramunda Bus Stand at Bhubaneswar, Gandhinagar Gole Market at Jammu, Indira Nagar Extension in Lucknow, Medicine Market in Dehradun, Palayam in Thiruvananthapuram, Lakkar Bazar Bus Stand in Shimla, Nambol in Bishnupur district, Metro Walk Market in Bhopal, Hatia Railway Station and Hinoo Chowk in Ranchi, Ulsoor Lake in Bengaluru and Girgaon beach in Mumbai.

shekhawat-gives-away-swachh-bharat-puraskar-to-rec-ltd

Shekhawat gives away Swachh Bharat Puraskar to REC Ltd

By IndianMandarins 13 Sep 2019

Union minister for Jal Shakti Gajendra Singh Shekhawat presented Swachh Bharat Puraskar to REC Ltd on September 6, 2019 for its contribution to the Swachh Bharat Kosh of the Ministry of Jal Shakti. The award was received by Executive Director (Finance), REC, Ajoy Choudhary and CEO, REC Foundation, SN Srinivas – the CSR arm of REC Ltd.

 

Swachh Bharat Kosh was set up in 2014 by the government to mobilise CSR towards achieving the objective of Clean India (Swachh Bharat). Till date, REC has contributed a total of Rs. 60 crore to the fund. REC Ltd is a Navratna NBFC focusing on Power Sector Financing and Development across India. REC Foundation is the CSR arm of REC Limited.

pfc-acquires-govt-stake-in-rec-for-rs-14,500-crore

PFC acquires govt stake in REC for Rs 14,500 crore

By IndianMandarins 22 Mar 2019

Power Finance Corporation Ltd. (PFC), on 20 March 2019, signed a Share Purchase Agreement to acquire 103.94 crore equity shares of INR 10/- each, of REC Limited from the President of India constituting 52.63% of the paid-up share capital of REC Limited. This is a major milestone achieved by PFC, who is now slated to become a promoter and the holding company of REC Limited.

 

The acquisition of REC Limited was in pursuance to the in-principle approval dated 6th December 2018 from the Cabinet Committee on Economic Affairs for the strategic sale of 52.63% of the paid-up equity shareholding of REC held by the President of India (acting through Ministry of Power, Government of India) to PFC along with transfer of management control.

 

Both PFC and REC are Navratna Central Public-Sector Enterprises with combined annual revenues of about Rs. 50,000 Crore and this acquisition is step towards consolidation of companies operating in the same space.

 

Subsequent to the PFC shareholders’ approval for the transaction, the Board of Directors of PFC considered the transaction and approved the acquisition of the 52.63% shareholding of the President of India in REC Limited, at a cash purchase consideration of INR 139.50 per share with total acquisition cost of about INR 14,500 Crore. The closing price of REC on 19th March, 2019 was INR 148.40 per share. The consideration for the transaction is expected to be paid on 28th March, 2019 and funds for the same have been arranged by PFC already.

 

The acquisition would enable increased efficiencies in lending processes and policies across both the institutions and would create public value by offering better loan products to the power sector. The convergence between the entities as combined group entities would help the power sector reap benefits from a decentralized outreach of REC and a professional project finance expertise of PFC. Further, the ensuing diversification of assets of the group, as well as portfolio risk would help in resolution of stressed power sector assets of the group in a better and coordinated manner.

 

For the acquisition transaction, Deloitte Touche Tohmatsu India LLP is the Transaction Advisor, L&L Partners (formerly Luthra & Luthra Law Offices) is the Legal Advisor and SBI Capital Markets Limited is the Valuer.

ramesh-prematurely-repatriated

Ramesh prematurely repatriated

By IndianMandarins 22 Mar 2019

Dr P V Ramesh (lAS:1985:AP) was on Friday pre-maturely repatriated to his cadre state i.e. Andhra Pradesh. Presently, he serves as Director General, National Archives of India, Ministry of Culture. Prior to this served as CMD of Rural Electrification Corporation (REC).

ramesh's-shifting-ahead-of-rec-stake-sale

Ramesh's shifting ahead of REC stake sale

By IndianMandarins 08 Mar 2019

Dr P V Ramesh's (IAS:1985:AP) shifting to the Ministry of Culture as DG, National Archives of India, from the post of CMD of Rural Electrification Corporation Ltd (REC) five months before his retirement in July is fraught with peculiar interpretations in view of the timeline approaching for the sale of REC's equities to PFC at a premium. People in power corridors find his abrupt transfer from REC more than a coincidence.

 

Indianmandarins has learned that when the CCEA decided on divesting REC shares, their value was quoted at (approx.) Rs 104. However, after the CCEA decision became public, the share value steadily rose to Rs 140. This was seen as an abnormal because most of the public-sector shares tend to decline when the announcement for their share dilution is made. This makes public investors respond enthusiastically to the sale of shares.

 

As planned, PFC is to acquire 52.63 percent government stake in REC in a merger deal. The Govt was earlier planning to sell the stake at a premium of about 15-20 percent which would have helped it mobilize Rs 15,000 crores. However, owing to the increased share price of REC, the PFC may have to look for additional funds to help the government with the much-needed revenue.

 

Reportedly, PFC was planning the acquisition through its reserves and surplus of Rs 10,000-Rs 12,000 crore and the balance was to be met through debt instruments. So, the company is in a quandary: if it raises more debt funds, its own shares may plummet causing grievous losses to its market capitalization. The government’s divestment proceeds have touched Rs 53,558 crore so far in the current fiscal against the full-year budget target of Rs 80,000 crore.

 

Indianmandarins has further learned that somehow the process of REC stake sale was delayed and during this intervening period, REC shares rose in value. This made the PFC cry foul and assert that it has limited funds to buy REC shares and the rise in REC shares may throw cold waters on its deal with the government.

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Indianmandarins.com, an initiative of New Media Network, is a multi-media initiative for the fast and real-time dissemination of news and information related to civil services, central PSUs and other institutions that play a critical role in governance, administration, corporate governance, and public life in India. We aspire to provide our esteemed readers with news breaks and situation analysis in the above-mentioned domain of operations. Currently, we are available at www.indianmandarins.com. We are now planning to branch off into print publication and few other related business initiatives.