Mumbai: State-run Rural Electrification Corp (REC) expects disbursements to power sector entities and also its bottomline to grow by 25% in 2009-10, its top official said on Tuesday.
“We will definitely have 25% growth in loan disbursements,” chairman and managing director P. Umashankar said.
“We had 17,000 crores (disbursements) in 2008-09. In 2009-10 we would be looking at...in excess of 21,000 crores,” he said.
REC has managed to reduce its non-performing assets (NPAs) sharply, as it cut its gross NPAs from Rs3.2 billion in FY08 to Rs690 million in FY09, while net NPAs were brought down from Rs2.4 billion to Rs210 million, he said.
“The gross NPAs came down from about 0.83% to 0.14% and net NPAs dropped to the level of 0.04%,” Umashankar said.
The development finance company’s net profit grew by 48% to Rs12.72 bilion in FY09, on total income of Rs49.31 billion.
“We are definite to ensure 25% growth in our bottomline (in FY10),” he said.
The company’s wholly owned unit, REC Distribution Company, will get Rs120 million over two years from Punjab for advisory services to set up a 1,800 MW power project via private participation, Umashankar said.
“In 2008-09, they (REC Distribution Co) closed with a profit of 1.4 crores after tax, and they paid the mother company 100% dividend.”
Another wholly owned unit, REC Transmission Company, is expected to finalise the private bidders for two ultra-mega transmission projects (UMTPs) in the first half of this year, he said.
Earlier, the company had identified six bidders to submit its price bids for two UMTPs -- North Karnapura and Talcher.
REC is the nodal agency for implementation for rural electrification work in the country and oversees implementation of government’s Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
“In all we have 562 projects in the field under implementation,” he said adding, “we will expedite the work under rural electrification program.”
The shares in the company closed down 0.55% at Rs143.85 in a flat Mumbai market.