Sunday, June 26, 2022

Discoms seek Rs 93,000 cr from PFC, REC under Aatmanirbhar Bharat package

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  • Four of the loan requests are in the advanced stage of completion of formalities and the first tranche of disbursements are expected to take place in the next 10 days

  • While Andhra Pradesh has sought Rs 6,600 crore, Punjab and Rajasthan have sought loans worth around Rs 4,000 crore each

New Delhi: State-run companies PFC (Power Finance Corporation) and REC (Rural Electrification Corporation) have received requests for processing loans worth about Rs 93,000 crore from discoms (power distribution companies) under the Aatmanirbhar Bharat Abhiyan package. Four of the loan requests are in the advanced stage of completion of formalities and the first tranche of disbursements are expected to take place in the next 10 days. A report published in The Economic Times said, that requests have come in from states such as Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, where dues owed by discoms to gencos (power generating companies) are huge.

Aatmanirbhar Bharat package: How much have state discoms sought so far?

The report quoted a government official as saying, “Andhra Pradesh discoms have submitted loan applications for Rs 6,600 crore.” He added, “All formalities, including submitting state government guarantee, have been completed. The sanction is under process. Maharashtra’s Rs 5,000-crore application is under sanction. All formalities including state guarantee are done,” the official added.

Punjab and Rajasthan have sought loans worth around Rs 4,000 crore each. Uttar Pradesh, where discoms owe dues totalling Rs 14,700 crore, is taking requisite approvals to submit a loan proposal, the report quoted a state government official as saying.

The government had announced a liquidity infusion of Rs 90,000 crore, along with other measures, in May as part of efforts to ease the debt burden and revive cash flow in the sector. The loans will be disbursed by PFC and REC in two tranches, as was reported by PSU Watch.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated.)

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