REC board approves increasing market borrowing program for FY19-20

The Board of Directors of REC Limited in its meeting held on March 25 has approved upward revision in Market Borrowing Programme for FY19-20 from Rs90,000cr to Rs94,000cr (i.e. increase of Rs4,000cr in raising funds through Domestic Bonds/Debentures, Rupee Term Loan, ECBs and Capital Gain Tax Exemption Bonds, to be raised during the balance period of the current financial year i.e. FY19-20) and approval of Market Borrowing Programme for FY20-21.

The board has also launched of Capital Gains Tax Exemption Bonds (Series XIV) under Section 54EC of the Income Tax Act, 1961 for raising of funds on private placement basis for an amount of Rs2,500cr with a green shoe option to retain oversubscription. The company said the issue will open on April 1, 2020, and close on March 31, 2021. However, it would have a right to pre-close the issue or extend the same at any time.