This Article is From Mar 18, 2016

REC To Invest Rs 99 Crore In EESL For Increasing Stake to 31.7%

REC To Invest Rs 99 Crore In EESL For Increasing Stake to 31.7%

New Delhi: Rural Electrification Corp on Friday said its board has given its approval to increase its stake to 31.7 per cent by investing Rs 99 crore more in Energy Efficiency Service Ltd (EESL).

"Further investment in the Equity Share Capital of EESL (a joint venture Company of NTPC, REC, PFC & Power Grid Corp) upto an amount of Rs 99 crore," REC said in BSE filing today. The decison was taken in a meeting of board of directors on Friday.

According to statement, after the proposed investment, the shareholding of REC in EESL will increase from presently 28.79 per cent (amounting to Rs 47.50 crore) to 31.7 per cent (amounting to Rs 146.50 crore) of the post issue paid up capital of EESL.

A joint venture of NTPC Ltd, Power Finance Corp, REC and POWERGRID, the EESL was set up under Power Ministry to facilitate implementation of energy efficiency projects.

EESL is a Super Energy Service Company (ESCO) that seeks to unlock energy efficiency market in India, estimated to at dollar 12 billion that can potentially result in energy savings of up to 20 per cent of current consumption, by way of innovative business and implementation models.

It also acts as the resource centre for capacity building of state DISCOMs, ERCs, SDAs, upcoming ESCOs, financial institutions, etc.

The REC also told the BSE that the board has approved the propsal of sale & transfer of 50,000 equity shares of Rs 10 each of NRSS XXXVI Transmission Ltd (a transmission project), a Wholly Owned subsidiary of RECTPCL (subsidiary of REC) to successful bidder (for the project) Essel Infraprojects Ltd.


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