Andhra to raise Rs 10,000 cr in loans to meet discoms' payment obligations

APPFCL acts as a nodal agency for raising the funds for the state power utilities either by issuing bonds or by taking loans from banks and financial institutions

The Andhra Pradesh government has mandated the AP Power Finance Corporation (APPFCL) to raise as much as Rs 10,000 crore at interest rates of not over 8.5 per cent. The amount will be utilised to fund discoms towards meeting their payment obligations.

APPFCL acts as the nodal agency for raising funds for state power utilities either by issuing bonds or by taking loans from banks and financial institutions. “The government has decided to extend guarantees for loans of up to Rs 10,000 crore-Rs 11,000 crore being raised by the corporation this year as the discoms need that much money