You are here: Home » Economy & Policy » News
Business Standard

Bengal takes Rs 1,022-cr transition loan from Centre to help power discoms

The loan is part of the central government's Rs 90,000-crore 'Atmanirbhar Bharat Abhiyan' package to assist stressed distribution companies

Topics
West Bengal | Coronavirus | Indian Economy

Press Trust of India  |  Kolkata 

power, electricity, IIP, demand, discoms, distribution, companies, firms, transmission, transformer, workers
With a consumer base of about two crore, WBSEDCL caters to the entire state except Kolkata and a part of its adjoining districts

has taken a Rs 1,022-crore transition loan from the Centre to help its power distribution company tide over liquidity stress amid the Covid-19 pandemic.

The loan is part of the central government's Rs 90,000-crore 'Atmanirbhar Bharat Abhiyan' package to assist stressed distribution companies.

The State Electricity Distribution Co Ltd (WBSEDCL) has been facing financial woes with minuscule collections in April and May resulting in an over Rs 2,000- crore shortfall, officials said.

With a consumer base of about two crore, WBSEDCL caters to the entire state except Kolkata and a part of its adjoining districts.

ALSO READ: Discoms' outstanding dues to power gencos rise 47% to Rs 1.33 trn in June

"We have taken a Rs 1,022-crore loan to clear dues of various Central and state entities," Power Minister Sobhondeb Chattopadhyay told PTI.

The Centre had on May 13 decided to make an infusion of Rs 90,000-crore through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), as a part of the 'Atmanirbhar Bharat Abhiyan'.

Under this intervention, REC and PFC would extend special long-term transition loans up to 10 years.

According to reports, the 10-year loan to the West Bengal government has a three-year moratorium period and is repayable in 84 EMIs.

First Published: Sun, August 02 2020. 17:13 IST
RECOMMENDED FOR YOU