REC board approves hike in borrowing
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New Delhi: State-owned REC Ltd on Thursday said its board has approved a proposal to increase borrowing to Rs 1.5 lakh crore from Rs 1.2 lakh crore for financial year 2023-24.
The Board of Directors of REC Ltd, in its meeting held on November 30, 2023, approved revision in its market borrowing programme under different debt segments with interchangeability among various instruments, including bonds/ debentures, term loans, external commercial borrowing, commercial papers etc on private/ public placement basis from Rs 1.2 lakh crore to Rs 1.5 lakh crore for FY 2023-24, the company said in a regulatory filing.
The funds under the said revised market borrowing programme will be raised, from time to time, during the FY 2023-24, with the approval of competent authority as per powers delegated in this regard by the Board of Directors, it added.
The board also approved the proposal of equity investment in Hindustan Power Exchange Ltd (HPX) for an amount up to Rs 14.25 crore (i.e. up to 19 per cent of the proposed equity share capital of Rs 75 crore of HPX). As of now, the paid-up capital is only Rs 55.25 crore, the filing said. The cost of acquisition is Re one per equity share (at par). HPX (formerly Pranurja Solutions Ltd) is the new-age power exchange in the Indian electricity market. It was incorporated on April 24, 2018.
