Uttar Pradesh seeks Rs 20,940 crore loan to clear power bills

Uttar Pradesh power distribution utility has sought Rs 20,940 crore loan from REC Ltd and Power Finance Corp (PFC) under the Atmanirbhar Bharat liquidity infusion package in the power sector.

This is the largest loan application made so far by any state distribution company under the scheme. Tamil Nadu has asked the Centre to relax borrowing cap and has shown intent to borrow about Rs 20,622 crore. The power ministry has approached the Cabinet for the relaxations and the matter is likely to be taken up soon.

So far Rs 46,400 crore loan applications have been received by REC Ltd and PFC, of which Rs 34,300 crore have been sanctioned. Close to Rs 11,220 crore have been disbursed by the two financial institutions, sources said.

So far, the two financiers have sanctioned Rs 6,600 crore to Andhra Pradesh discoms, of which Rs 3,286 crore has been disbursed; Rs 12,650 crore to Telengana, of which Rs 5,436 crore has been disbursed; and Rs 5,000 crore to sanctioned to Maharashtra, of which Rs 2,500 crore has been disbursed.

The disbursements are made directly to the power generating companies by PFC and REC on behalf of the distribution companies.

ET Energy World
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