In view of the growing need to diversify the resource base of the Corporation, a dedicated IC&D Division headed by an Executive Director was set up in July 2004 to coordinate with multilateral agencies for tying up project based funds on concessional terms and to forge partnerships with international agencies for sharing international best practices.

External Assistance of over Rs. 1100 Crore has already been tied up with JBIC & KfW, and negotiations are under way for securing additional lines of credit for EHV Projects of Haryana and for HVDS projects of Haryana for further financial assistance.  

 Details of Projects Presently being funded by Bilateral Agencies

     JBIC Assisted Rural Electrification Project

• Loan assistance            :    21 billion yen (approx. Rs. 700 crores)
  
  
• States covered              :    Andhra Pradesh, Maharashtra &  Madhya Pradesh
• Objectives                     :    Improving sub transmission systems in rural areas
• Works envisaged          :    Construction of new & augmentation of existing                                             33/11 KV substations   
• Loan tenure                   :    15 years including 5 years moratorium
• Project Implementation:   100% Turnkey Contract
  
  
• Procurement                  :    Local Competitive Bidding
  
  
• Project Financing          :    Upto100% of Project Cost

     KfW Assistance under Indo German Bilateral Cooperation for REC’s Energy          Efficiency Programme 

• Loan assistance             :     70 million Euro (approx. Rs. 400 crores).
  
  
• Project area                   :     Andhra Pradesh
  
  
• Objectives                      :     Reduction in line losses, improvement in                                                voltage regulation and reliability of power supply
  
  
• Works envisaged           :     Conversion of LT lines to High Voltage Distribution                                               System (HVDS)
  
  
• Loan tenure                   :     12 years including 3 years moratorium
  
  
• Grant                              :     500,000 Euro (Rs. 2.75 crore) for capacity building
  
  
• Project Implementation:     100% Turnkey Contract
  
  
• Procurement                  :     Local Competitive Bidding
  
  
• Project Financing          :      Upto100% of Project Cost

  Role of REC

• To act as Financial Intermediary between External Funding agencies and the project implementers for securing concessional Official Development Assistance  (ODA) and other funds for financing eligible power sector projects

• To assist project implementers in formulation of project proposals as per requirement of MoP/MoF and external agencies
• To arrange GoI Guarantee for securing concessional financing
• To borrow in foreign currency and to on lend in domestic currency, thereby absorbing risks of foreign currency fluctuations
• To act as nodal agency for overseeing project implementation as per norms of external agencies and to monitor the impact of the project on completion

 Other Initiatives:                             

       USAID Assisted Cooperation with Rural Utilities Service (USA) under            Distribution Reforms, Upgrade and Management (DRUM) Project

•   DRUM aims at demonstrating best practices that improve the quality and reliability of “last mile” power distribution.

•   REC’s Role:

     –  Development of alternate financing model in partnership with          USAID and Rural Utility Services (RUS) of USA.

     –  Imparting Training on Best Practices in distribution systems

Eligibility Requirements and Procedure for Submission of Project Profiles for funding by External Agencies

   For any information please contact :    Shri Ashok Awasthi,
                                                                      General Manager (IC&D)
                                                                      Phone No. 011-41757033
                                                                      e-mail- ashok.awasthi@recl.nic.in