Discoms keen on Atmanirbhar package loans

New Delhi: Power Finance Corp (PFC) and REC Ltd have received interest to avail loans worth about ₹93,000 crore from power distribution companies under the Atmanirbhar Bharat liquidity infusion package, at least four of which are in advanced stages of completing the required paperwork. The first tranche of disbursements to some distribution companies is likely to happen in the next 10 days.Requests have come from states such as Tamil Nadu, Andhra Pradesh, Telengana, and Maharashtra whose discoms have high payables to power plants, sources said. Uttar Pradesh discoms with Rs 14,700 crore dues to power generation companies are taking requisite approvals to submit a loan proposal, a state government official said.While Rajasthan discoms owe ₹33,000 crore dues to power projects, distribution utilities have sought ₹4,000 crore loan from REC and PFC. The majority of their dues are towards state generation companies, which are not covered under the scheme.Andhra Pradesh is the first state to give nod for availing ₹6,600 crore loan under the Centre’s ₹90,000 crore scheme. Maharashtra discoms have submitted application for ₹5,000 crore loan, the sources said. Delhi discoms and Punjab and Rajasthan have also applied. Some of these states are in advanced stages of completing all formalities for sanction of loan, they said.“Andhra Pradesh discoms have submitted loan application for Rs 6,600 crore,” a government official said. “All formalities including submitting state government guarantee have been completed. Sanction is under process. Maharashtra’s Rs 5,000 crore application is under sanction. All formalities including state guarantee are done. Punjab and Rajasthan have also submitted applications for about Rs 4,000 crore each.”Tamil Nadu, Bihar and Odisha, which do not have headroom for borrowing and adequate receivables from state governments, have approached the Union power ministry seeking exemption from working capital limits. The Centre is soon likely to consider proposal for one-time relaxation of working capital lending limits by REC and PFC to discoms.

from Economic Times https://ift.tt/3enEro8