Finance, Other

Power Finance Corp disburses Rs 74 billion to sick Discoms in India

According to reports, Power Finance Corporation Ltd on Wednesday said it had disbursed Rs 7,400 crore of transitional loans to five financially ailing State Electricity Distribution Utilities (Discoms). These are in Punjab, Haryana, Uttar Pradesh, Rajasthan and Tamil Nadu.

PFC has given a three-year moratorium on interest payment and another seven years to repay the loans, PFC Chairman Satnam Singh said.

“As and when the Discoms achieve milestones, more funds would be disbursed,” Singh added. PFC has sanctioned Rs 16,000 crore for the Discoms.

The State Discoms that approached PFC for these loans include Punjab (Rs 1,000 crore); Haryana (Rs 4,300 crore); Uttar Pradesh (Rs 1,800 crore); Rajasthan (Rs 4,500 crore); Tamil Nadu (Rs 5,000 crore) and Andhra Pradesh (Rs 3,000 crore).

However, Andhra Pradesh later did not approach PFC for the loan.

The loans offered by PFC are separate from the Discom re-structuring package unveiled by the Government. The package is open till December 30, wherein the utilities can apply to re-cast their bad loans.

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