POWER

Why most discoms are yet to get state govt nod for PFC-REC loans

Most of the state-run power distribution companies (discoms) that have evinced interest in the PFC-REC loan facility are yet to receive the final approval from the respective state governments to file requests for loans.

As on June 24, the Centre had received from discoms preliminary letters of interest for an aggregate amount of Rs 91,699-crore loans, but final applications, supported by state governments, were for only Rs 18,491 crore, and these belonged to just six states, according to official sources.

Any delay in the process of sanction and release of the special Rs 90,000-crore loans could undermine the discoms’ ability to clear dues to power generators – dues rose 72% year-on-year to Rs 1.06 lakh crore at April-end. Over-dues or dues of more than 60 days to central government-owned thermal power plants were Rs 36,318 crore while discoms’s dues to private players and renewable units were Rs 40,101 crore and Rs 8,410 crore, respectively, at the end of April.

The Centre had announced the liquidity infusion scheme under the Atmanirbhar Bharat package. According to documents reviewed by FE, PFC and REC, which will disburse the loans, have received formal application from discoms of Andhra Pradesh

Source
financial express
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