REC & PFC to raise funds through Medium Term Notes for projects

Power Finance Corporation(PFC) has approached RBI for in-principle approval of US$ 1 billion to set up a Medium Term Notes (MTN) programme for raising ECBs. The proceeds of the ECB would be utilized for funding the power projects including Ultra Mega Power Projects financed by the PFC.

Rural Electrification Corporation (REC) intend to mobilize more than US$ 1 billion from ECBs during the current financial year i.e. 2011-12. The money will be utilized to fund infrastructure projects in the power sector. REC has since received approval for raising US$ 750 million through ECB.