PFC, REC disburse Rs 33,694 cr transitional loans to discoms

Power Finance Corp and Rural Electrification Corp have disbursed transitional loans worth Rs 33,694 crore to state-owned power distribution companies, the government said today.

 

Besides, the two state-owned power sector lenders have together subscribed to Uttar Pradesh Power Corp Ltd's (UPPCL) bonds worth Rs 2,612 crore.

 

In a written reply to a question whether the government is providing financial help to crisis-ridden power companies, Power Minister Jyotiraditya Scindia said that PFC and REC have given transitional loans amounting to Rs 33,694 crore to state-owned power distribution companies.

 

The government is also implementing a financial restructuring plan for discoms.

 

Under the plan, state government would take over 50 per cent of outstanding short term liabilities of the discoms as on March 31, 2012. The remaining half would be rescheduled by the lenders with moratorium on principal payment.

 

Scindia further said that so far Rs 7,142.61 crore has been disbursed to discoms under the Restructured APDRP (Accelerated Power Development and Reform Programme).

 

Restructured APDRP was approved in 2008 with total outlay of Rs 51,577 crore keeping focus on actual, demonstrable performance in terms of AT&C (Aggregate Technical & Commercial) loss reduction on sustainable basis of discoms.