New Delhi: State-run Power Finance Corporation (PFC) and REC Limited have decided to reduce lending rates by up to 2 percent. In an official statement released on Wednesday, the two PSUs said, "PFC Limited and REC Limited, Navratna PSUs under the Ministry of Power, are the prime financiers of the Indian Power Sector capturing a significant market share in financing the Indian Power Sector. PFC and REC as group companies have been aligning operations to realise synergies. As a part of such efforts, PFC and REC have now decided together to reduce lending rates up-to 2 percent."
This initiative was undertaken to offer competitive rates, in line with the rates being offered by peers in the market, the statement said. This will also help PFC and REC to continue their business growth going forward, in addition to maintaining reasonable spreads. The reduction in lending rates will help both PFC and REC to offer lower rates to power utilities, which will reduce their borrowing costs thereby reducing their interest payments and in turn benefitting the end consumer in terms of lower tariffs.
The lending rates will be effective from April 1.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram & Twitter as well. Join PSU Watch Channel in your Telegram and follow us on Twitter to stay updated)