Rural Electrification Corporation Limited – Objectives & Functions

Purpose: The purpose of REC is to finance and promote rural electrification projects in India.

Year of Establishment: 1969

Ministry: Ministry of Power, Government of India

Type: Government of India Enterprise

This topic of “Rural Electrification Corporation Limited – Objectives & Functions” is important from the perspective of the UPSC IAS Examination, which falls under General Studies Portion.


• Provide financial assistance to state electricity boards, state governments, rural electric cooperatives, etc., for rural electrification projects.
• Act as the nodal agency for implementing the government’s Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme.
• Provide technical and managerial consultancy services for rural electrification projects.
• Assist in setting up and managing power distribution networks.
• Provide loans to other agencies for rural electrification projects.
• Promote and facilitate the development of renewable energy sources.

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