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Rs 90,000-crore package: PFC, REC have disbursed Rs 24,674 cr to discoms, says RK Singh

Central PSUs PFC and REC Ltd have disbursed Rs 24,674 crore out of the sanctioned amount of Rs 68,164 crore to discoms so far, said RK Singh

Central PSUs PFC and REC Ltd have disbursed Rs 24,674 crore out of the sanctioned amount of Rs 68,164 crore to discoms so far, said RK Singh.
Central PSUs PFC and REC Ltd have disbursed Rs 24,674 crore out of the sanctioned amount of Rs 68,164 crore to discoms so far, said RK Singh.
  • To provide relief to consumers, the government intervened through the provision of rebates worth Rs 2,985 crore to discoms through CPSUs, said the minister

  • These companies were also advised not to take any coercive measures for recovery of outstanding dues from DISCOMs during the lockdown period, said Singh

New Delhi: Central PSUs Power Finance Corporation (PFC) and REC Ltd have disbursed Rs 24,674 crore out of the sanctioned amount of Rs 68,164 crore to discoms so far under the Rs 90,000-crore bailout package, Union Power Minister RK Singh informed the Rajya Sabha. “Government of India took proactive steps to infuse liquidity of Rs 90,000 crore in the power sector through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) Ltd to ensure that liquidity does not become an impediment in the supply of power to the country in wake of COVID-19. Under this intervention, REC and PFC have been directed to extend special long term transition loans upto 10 years to Distribution Companies (DISCOMs) for liquidating outstanding dues of Central Public Sector Undertaking (CPSU) Generation (Genco) and Transmission Companies (Transcos), Independent Power Producers (IPPs) and Renewable Energy (RE) generators as existing on 30.06.2020,” said Singh.

Discoms received rebate of Rs 2,985 crore from PSUs: Singh

With an objective to provide relief to consumers, including domestic and industrial, during and after the nationwide lockdown imposed to control the COVID-19 pandemic, the government intervened through provision of rebates worth Rs 2,985 crore to discoms through Central Public Sector Undertakings (CPSUs), said the minister. The rebates were offered by PSUs (under the administrative jurisdiction of the Ministry of Power in the power generation and power transmission sector) so that they could be passed on to consumers. 

Also read: PFC, REC sanction loans to discoms worth Rs 68,000 cr in 1st tranche

“Further, in order to ensure that consumers continue to be provided electricity during the lockdown period, these companies were also advised not to take any coercive measures for recovery of outstanding dues from DISCOMs during the lockdown period,” said Singh.

Reduction in late payment surcharge was ordered by CERC

The minister told the Rajya Sabha that the Late Payment Surcharge (LPS) was also slashed from 18 percent to 12 percent on the directions of the Central Electricity Regulatory Commission (CERC) for the period between March 24 and June 30, which would benefit discoms. Further, PFC and REC have granted moratorium on the payment of interest and principal payments arising during the period between March 1 and August 31 for a period of three months.

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