Calcutta, Feb. 16: State-owned Rural Electrification Corporation Limited (REC), which plans to come out with a second public offering later this week, is aiming to mobilise Rs 2,500 crore through capital gains tax exemption bonds in 2009-10.

“Till January-end, we have collected Rs 900 crore,” said A.K Agarwal, general manager (finance), REC. “Subscriptions to capital gains tax saving bonds are generally higher in February and March,” he said.

However, he said, the contribution of the bonds to the company’s total resource mobilisation might decline to 10-11 per cent in the next fiscal from 21.7 per cent.

After the government put a cap of Rs 50 lakh on investment by an individual in bonds eligible for capital gains tax exemption under section 54EC in a fiscal, the issuers of such bonds have been experiencing declining collections.

In 2007-08, REC collected Rs 3,400 crore from issuing the bonds. The collection came down to Rs 2,500 crore in 2008-09.

“We are targeting to collect Rs 2,500 crore this year, too,” Agarwal said.

However, REC is unlikely to achieve the target in this fiscal year.

“The outgo on account of redemption of these bonds every year is between Rs 700 crore and Rs 800 crore,” he said.