Rural Electrification Corporation Limited (REC), was incorporated on July 25, 1969 under the Companies Act 1956. REC is a wholly owned Government of India Public Sector Enterprise with a net worth of Rs. 5368 Crore.  Its main objective is to finance and promote rural electrification projects all over the country.  It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.

REC provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its Corporate Office located at New Delhi and 17 field units (Project Offices), which are located in most of the States.

The Project Offices in the States coordinate the programmes of REC’s financing with the concerned SEBs/State Power Utilities and facilitate in formulation of schemes, loan sanction and disbursement and implementation of schemes by the concerned SEBs/State Power Utilities.

CATEGORY OF SCHEMES FINANCED BY REC

CATEGORY	PURPOSE
Project Household Electrification P:RHhE	Accelerated Electrification of one Lakh villages and one crore households
Project Village Electrification: P:VE (SG)#	Aims at Electrification of unelectrified villages in a selected designated area
Project Dalit Basti: P:DB(SG)#	Aims at Electrification of unelectrified tribal /dalit bastis by release of Household, Street Light and other connections
Project Hamlet Electrification: P:HE(SG)#	Aims at Electrification of unelectrified hamlets by release of Household, Street Light and other connections
Project Village Electrification: P:VE	Aims at electrification of new villages including electrification of left out hamlets in a selected designated area
Project Intensive Electrification: P:IE	To cover intensive load development for providing connections to rural consumers in already electrified areas
Project Dalit Basti: P:DB	To cover electrification of dalit bastis located in the electrified areas by release of house hold and street light connections
Project Hamlet Electrification: P:HE	To cover electrification of hamlets located in the electrified areas by release of house hold and street light connections
Project Pumpsets: SPA:PE	Aims at energisation of pumpsets
Project system Improvement: P:SI	To strengthen and improve the transmission, sub transmission and distribution system in the designated area
Project Comprehensive System Improvement: P:CSI	To meet system inadequacy of entire system from LT Distribution to Sub transmission and transmission level of a given geographical area
SI:Meters, Transformers, Conductors, capacitors etc.	For procurement and installation of meters, transformers and capacitors etc.
Short Term Loan	To provide finance to the Power Utilities and State Governments to meet their working capital requirement for different purposes, such as purchase of fuel for power plant, purchase of power, purchase of material and minor equipment, system and network maintenance including transformer repairs, etc.
Debt Refinancing	The Scheme aims to facilitate reduction of the cost of borrowings of State Power Utilities/highly rated private power utilities by repaying their high cost term loans raised from other Banks/Financial Institutions for eligible projects/schemes.
Financing Equipment manufacturers	To provide Short term Loan/Medium term loan to the manufacturers of Power/Electrical material for power project.
RE Cooperatives	Development of rural electric cooperative societies
Generation	Covers all types of schemes irrespective of nature, size and source of generation.