Subscribe to Rural Electrification Corporation(REC)

Rural electrification Corporation (REC) is the prime lender for the power sector,Which is going to hit the indian capital market with a public issue. Issue opens tomorrow(Feb19) closes Feb 22. India's huge power deficit and its position as a country that has one of the lowest per capita power consumption of 600 units (world average of 2,500 units) has led the government to pursue policies to attract public and private investments into the Indian power sector. This means huge demand for funds for setting up projects and hence, benefits for sector specific specialised financing organisations like Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). REC is seeking to partner an infrastructure to enter electricity distribution.The company had last year floated a wholly-owned subsidiary - REC Power Distribution Company Ltd (RPDCL) - to promote and develop distribution systems. However, the subsidiary is proposed to be converted into a joint venture to enable REC diversify its range of offerings. RPDCL has also entered into an agreement with Jodhpur Vitran Nigam Ltd for supervision and inspection of village electrification work under the Rajiv Gandhi Grameen Vidyuthikaran Yojana (RGGVY). In medium term point of view one can subscribe to REC @cutoff price.