Rs 1143.34 cr dividend paid to power ministry by REC Ltd

State-owned REC Ltd Friday said it has paid Rs 1,143.34 crore as interim dividend for 2018-19 to the power ministry. Ajeet Kumar Agarwal, CMD & Director (Finance) of REC presented RTGS credit advice towards payment of interim dividend for the 2018-19, amounting to Rs 1,143.34 crore on the shareholding of the central government in REC to R K Singh, Minister of State for Power (Independent Charge) on Wednesday, March 20, 2019, a company statement said.

The Board of REC had declared an interim dividend at the rate of Rs 11 per equity share representing 110 per cent of the total paid up share capital of the company for 2018-19, according to the statement. Further, it said that during the nine months ended December 31, 2018, the company sanctioned new projects of Rs 96,357 crore and disbursed Rs 52,269 crore to various power sector borrowers.

During the nine months period, the company recorded a PBT (profit before tax) of Rs 6,466.20 crore and PAT (net profit) of Rs 4,507.59 crore, thereby registering a y-o-y (year on year) growth of 31.93 per cent and 25.89 per cent, respectively. The REC is a non-banking finance firm and Infrastructure Finance Company (IFC) focusing on the power sector. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.

It's business activities involve financing projects in the complete power sector value chain; different type of projects includes generation, transmission, distribution projects and renewable energy projects.