Rural Electrification Corporation ran up Rs 153.36 crore loss on concessional interest: CAG
Government auditor CAG today said state-owned utility Rural Electrification CorporationBSE -1.47 % (REC) has suffered a loss of Rs 153.36 crore as it did not claim reimbursement of differential interest on soft loans.
“REC Limited suffered loss of Rs 153.36 crore up to December 2014 as it did not approach the Ministry of Power to reimburse the differential interest on soft loans it had extended under Rajiv Gandhi Grameen Vidutikaran Yojana (RGGVY),” said a CAG Compliance Audit Observations report tabled in the Lok Sabha today.
The Power Ministry notified RGGVY in March 2005 and appointed REC the nodal agency for implementation of the scheme. There was no specific condition stipulated for providing soft loans under RGGVY.
A brochure issued by the Ministry said the government will provide capital subsidy and REC the remaining amount as loan assistance on soft terms.
The CAG observed that REC on the basis of the above brochure at its board of …