REC to sanction Rs 54,600 crore loans in 2012-13

NEW DELHI: State-run Rural Electrification Corp ( REC), a leading lender for the power sector, would sanction loans worth Rs 54,600 crore during 2012-13 fiscal, around nine cent more than its target for the current fiscal.

REC mentioned the 2012-13 target in the Memorandum of Understanding (MoU) signed today with the Power Ministry for the next financial year.

The targets for sanction and disbursement of loans have been set at Rs 54,600 crore and Rs 27,300 crore, respectively, for 2012-13, REC said in a statement.

The company sanctions loans to state electricity boards,power utilities, state governments and rural electric co-operatives, among others.

"These targets have shown a increase of 9.92 per cent in case of disbursements and 9.2 percent in case of sanctions as compared to the financial year 2011-12," it said.

The MoU was inked by Power Secretary P Uma Shankar and REC Chairman and Managing Director Rajeev Sharma.

"A unique feature of this MOU is creation of an HR template which captures different facets of HR performance deliverables comprehensively carrying a weightage of 5 per cent," the statement said.