Power sector lenders PFC and REC will use the Rs 90,000-crore loan amount allotted to state-run power distribution companies (discoms) to directly pay power generators (gencos) which owe money from these entities.
“The payment shall be released directly to CPSU gencos /RE rencos/IPPs/ CPSU transcos based on authorisation of discoms in this regard,” policy notes separately released by the lenders explaining the disbursal mechanism of the ‘special long-term transition loan to discoms for COVID 19’ said.
The Rs 90,000-crore loan was announced by finance minister Nirmala Sitharaman last week to inject liquidity into the electricity sector as a part of the Atmanirbhar Bharat package. Discoms will be eligible for these loans only to the extent of the amount receivable to them from their respective state governments in the form of unpaid subsidies and dues (pending bills of civic bodies and other such institutions), restricted to outstanding dues of gencos and Power Grid Corporation of India.
Such government department dues to discoms currently stand at about Rs 54,000 crore across the country.