PFC extends Rs 4,905 crore lifeline to Anil Ambani's BSES

The borrower, however, would need a comfort letter from the Delhi government in order to draw down the loan

Power Finance Corporation has sanctioned a loan of Rs 4,905 crore to BSES, in a bid to bail out the financially troubled Anil Ambani-promoted firm, said sources close to the development. 

BSES discoms had sought a long-term financial solution through PFC, which had proposed a financial package of Rs 11,006 crore last year. This package now has been given an in-principle sanction, subject to BSES meeting the terms and conditions stipulated by the lender.

DERC, in its last tariff order of July 2014 and an earlier affidavit submitted in the Supreme Court, has admitted that it owes an amount of Rs 9,811 crore to BSES discoms. Further, DERC has also admitted before the apex court that an additional Rs 4,500 crore would be due to BSES discoms on account of APTEL judgements in their forum.

BSES, however, would need to approach the Delhi government for a 'Letter of Comfort' so as to enable draw down of the loan.