TN gives guarantee, budgetary support for Rs 30,230 cr liquidity loans

The Tamil Nadu government has approved guarantee and budgetary support for repayment of Rs 30,230 crore loan being taken from Power Finance Corp (PFC) and REC Ltd under Atma Nirbhar Bharat liquidity infusion scheme. This is the biggest loan application by a state, about a-fourth of the Centre’s extended Rs 1,20,000 crore liquidity infusion scheme, to settle power bills.

The state has issued administrative orders for unconditional and irrevocable government guarantee and commitment letters from finance department for financial assistance of Rs 30,230 crore for loan proposed to be availed from PFC and REC Ltd, sources said.

The sources also said that the Maharashtra has availed an additional Rs 9,310 crore under the scheme. This is over and above Rs 5,000 crore the state took earlier under the same scheme.

The loan application from Tamil Nadu and sanction to Maharashtra come after the government on August 19 approved extending the power sector liquidity infusion package to cover discom dues till June 30 and allowed a one-time relaxation in working capital lending limits by PFC and REC to electricity distribution companies. The relaxation helped Odisha, Bihar, Jammu and Kashmir and Tamil Nadu to avail loans.

ET Energy World
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