"Since the circumstances have changed we have decided to diversify intorelated areas to suit the requirement of our clients," said REC chairman andmanaging director Divakar Dev. Besides, the competitive environment has alsoforced REC to change its corporate strategy and expand its operations, hesaid, adding that the company however, would continue to work for thedevelopment of rural and semi-urban areas. Under the rural electrificationprogramme, REC is to facilitate at least one electricity connection in anarea which has a significant population. The government does not specify thearea that can qualify for such electrification on the basis of number ofhouses or residents.

Thus, there are villages which have power connection in some areas, still alarge number of houses in these villages do not have electricity due toinadequate transmission and distribution network. REC has separate schemesto finance strengthening of T&D infrastructure.

REC has decided to launch several new schemes including short-term loanfacility to SEBs for procurement of equipment and materials for ruralelectrification works; bridge finance; special loans for installation ofmeters, transformers, LT switch capacitors; loans for generation projects ofup to 25 mw and loans for intensive electrification and system improvementin semi-urban areas with population up to 1.5 lakh.

"We recently launched a scheme for comprehensive system improvement projectsto enable SEBs to remove system inadequacies at all voltage levels in anintegrated manner," said Dev.

Maharashtra and Karnataka have put forward some proposals under this schemewhich are under consideration. The plans have evolved with the realisationthat in some areas, the benefit of strengthening the system can be realisedfast and at a lower cost if the improvement is planned in an integratedmanner.

"Besides, it was noticed that while REC was catering to rural areas andother funding agencies were investing for projects in urban areas, thus SEBsfound it difficult to implement schemes for the improvement of thesemi-urban areas," said Dev. Hence, REC has also decided to cater to theprojects for semi-urban areas. Assistance to private projects having similartarget would also be considered by REC, he added.