Rural Electrification enters into Capital Market on 19th Feb'08

Thebullishtrends: The leader in power sector Rural Electrification Corporation,will hit in capital market with a public issue on 19th February'08, is seeking to partner an infrastructure firm to enter electricity distribution segment. RECL had last year floated a wholly-owned subsidiary - REC Power Distribution Company Ltd (RPDCL) - to promote and develop distribution systems. The subsidiary is proposed to be converted into a joint venture to enable REC diversify its range of offerings. As per the reports the authorised share capital of RPDCL is also proposed to be raised to Rs 1,000 crore from the present Rs 20 crore. The proposals are subject to approval of shareholders of REC, RPDCL and the Power Ministry. RECL is one of the two leading public financial institutions in Indian power sector. REC and state-run Power Finance Corp provide financing and consulting services for development of power projects in the country. Its arm RPDCL has been appointed as the nodal agency by Punjab State Electricity Board for selecting a developer for a proposed 1,800 MW power project. The company will get Rs 12.5 crore for this assignment. Besides, RPDCL has also entered into an agreement with Jodhpur Vitran Nigam Ltd for supervision and inspection of village electrification work under the Rajiv Gandhi Grameen Vidyuthikaran Yojana (RGGVY).