Centre looks to EPFO, LIC, PSBs to raise funds through power bonds

PFC, REC will first issue bonds based on initial demand from states

The Centre is looking to tap the domestic bond market for supporting the Rs 90,000-crore loan scheme for power distribution companies (discoms), announced as part of the Aatmnirbhar Bharat package. 

Life Insurance Corporation (LIC), Employees’ Provident Fund Organisation (EPFO), and state-owned banks are likely to be asked to subscribe to these bonds.

Two power sector lenders — Power Finance Corporation (PFC) and REC (formerly Rural Electrification Corporation) — are the nodal agencies for the scheme. They will lend to the discoms for clearing dues to power-generating companies (gencos).

Union Finance Minister Nirmala Sitharaman, in her 15-point agenda to boost the