Inside Pages9Final.indd - Ministry of Power

Transformation of lives in rural India with
accessability to Power
year 2005-06 is Rs.9000 crores. The balance amount of
Rs.5804 crore is proposed to be raised during the period
from December, 2005 to March, 2006.
3. Pre-payment of high cost Bonds
During the year 2005-06, REG has so far exercised call
option of Rs. 485.95 crore in respect of REG Bonds,
as a part of the process of pre-paying higher cost of
borrowings with cheaper funds raised from the market.
During the remaining part of the year it is proposed to
exercise additional call option on various debt instruments
to the tune of Rs.190.00 crore besides normal redemption
of Bonds.
4. Business Development
10.1 During the year 2005-06 REG has signed MOU with
Jammu & Kashmir State Power Development Corporation
(J&K SPDC) and Institute of Public Enterprise (IPE),
Hyderabad under the Business Development Plan:
MINISTRY OF POWER
i) MOU with Jammu & Kashmir State Power Development
Corporation was signed on 9th September, 2005 to
finance 93 MW New Ganderbal HEP, Distt. Srinagar,
375 MW Pamai HEP, Distt. Poonch and 240 MW Kerthai
HEP, Distt. Doda.
ii) MOU with Institute of Public Enterprise, Hyderabad was
signed on 10th November, 2005 to jointly develop and
conduct training programmes in power generation and
distribution sector on identified subjects in technical,
management, financial, applied behavioral Sciences
and IT.
4.2 Award of Silver Medal to REC at IITF-2005
Rural Electrification Corporation participated in India
International Trade Fair 2005 (IITF) by putting up its stall at
Ministry of Power pavilion. REC was awarded Silver medal for
excellence in presentation of Theme on Power at IITF-2005.
5. International Cooperation
5.1 Japan Bank for International Cooperation (JBIC)
assistance
Negotiations are in advance stage with JBIC for a line
of credit of Rs. 850 crores under ODA assistance (21
billion yen) for the Rural Electricity Distribution Backbone
Project in the States of Andhra Pradesh, Madhya Pradesh
and Maharashtra. The project envisages construction of
about 750 new 33/11 KV sub stations and augmentation
of 510 sub stations in these States. On implementation,
these sub stations would assist in accelerating the pace
of household electrification in the concerned States. This
credit is expected to be sanctioned in the forthcoming
Inter-governmental meeting in January 2006 and the loan
agreement is likely to be signed during March, 2006.
5.2 Indo German Bilateral Cooperation
Discussions are on with Kfw Germany for a line of credit
of Rs. 400 crores (72 million Euro) for the High Voltage
Distribution System Project of Andhra Pradesh Southern
Power Distribution Company Limited (APSPDCL). The
project aims at reduction in distribution losses, failure
rate of distribution transformer and avoidance of theft in
agriculture sector and will ultimately help in improving the
financial sustainability of APSPDCL. This loan is expected
to be approved in the forthcoming Inter-governmental
negotiations during December, 2005/January, 2006
and the loan agreement is likely to be signed during
March, 2006.
5.3 USAID Assisted Distribution Reforms, Upgrades
and Management (DRUM) Project
(i) Under the USAID assisted DRUM project, the Rural
Utilities Service (RUS) of USA have been assisting
REC to develop an alternative model for financing
rural electrification programme to make it viable and
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