POWER

₹6,000 crore released to clear debts of discoms

In partial payment of ₹12,000 crore loan assured to the two power distribution companies (Discoms) of Telangana to clear off their outstanding dues to various power generators, the State-owned Power Finance Corporation (PFC) and the Rural Electrification Corporation have released ₹ 6,000 crore and deposited the amount to the accounts of the generators.

The loan was sanctioned as part of the Centre’s decision to infuse one-time relief of ₹ 90,000 crore through PFC and REC to revive the financial health of ailing Discoms in the country. The relief to discoms was one of fifteen measures announced by Union Finance Minister Nirmala Sitaraman to combat the economic effect of coronavirus-infused lockdown with a relief package of ₹ 20 lakh crore. The PFC and REC will infuse the liquidity by raising ₹ 90,000 crore from market against the receivables of discoms. The State governments will give guarantee. The amount will be used to pay Central public sector power generation companies, transmission companies, independent power producers and renewable energy generators.

Source
The Hindu
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