REC seeks shareholders nod to raise borrowing limit to Rs 3.5 lakh cr

State-run Rural Electrification Corporation (REC) has sought its shareholder's approval to raise its overall borrowing limit to Rs 3.5 lakh crore from existing Rs 2 lakh crore.

The company at its annual general meeting scheduled on September 25 would also seek a vote on changing the name of the company to REC Ltd.

"The projected level of borrowing during 2018-19 is likely to exceed the presently approved limit. Therefore, the consent of the Members is sought for increasing the borrowing limit from Rs 200,000 crore to Rs 3,50,000 crore to cover further requirement of borrowing," the notice for AGM on September 25 stated.

The net amount of borrowing of the company as on March 31, 2018, was Rs 1,98,791 crore and a sum of Rs 60,000 crore is likely to be borrowed during 2018-19 for lending activities.

It is also proposed through a special resolution to authorize the Board to mortgage / to create a charge on immovable and/or movable properties of the Company, both present, and future, for securing loan up to Rs 3,50,000 crore.

In another proposal, the company said that considering that 'REC' has become a brand name and is recognized by the public at large in India and abroad, it is proposed to change the name of the company from "Rural Electrification Corporation Limited" to "REC Limited".

It said, "In day to day interactions, discussions, correspondence with statutory bodies, borrowers, lenders, investors and other stakeholders, the Company is normally using abbreviated names "REC" & "RECL" and these names are well recognized across the industry and market. Further, the logo of the Company registered with the Trade Marks Registry is also containing the word "REC"."

It pointed out that the name of Company "Rural Electrification Corporation Limited" gives an impression that the company is mainly into the business of rural electrification whereas, the company is having a remarkable presence in the financing of all segments of Indian Power Sector viz. generation, transmission, distribution, renewable energy, etc.

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