In partial payment of ₹12,000 crore loan assured to the two power distribution companies (Discoms) of Telangana to clear off their outstanding dues to various power generators, the State-owned Power Finance Corporation (PFC) and the Rural Electrification Corporation have released ₹ 6,000 crore and deposited the amount to the accounts of the generators.
The loan was sanctioned as part of the Centre’s decision to infuse one-time relief of ₹ 90,000 crore through PFC and REC to revive the financial health of ailing Discoms in the country. The relief to discoms was one of fifteen measures announced by Union Finance Minister Nirmala Sitaraman to combat the economic effect of coronavirus-infused lockdown with a relief package of ₹ 20 lakh crore. The PFC and REC will infuse the liquidity by raising ₹ 90,000 crore from market against the receivables of discoms. The State governments will give guarantee. The amount will be used to pay Central public sector power generation companies, transmission companies, independent power producers and renewable energy generators.
The Telangana government gave a guarantee of ₹ 12,000 crore for the ₹ 12,609 crore receivables of its two discoms from various government departments. As soon as the guarantees were issued by the government, the PFC and REC sanctioned ₹ 12,000 crore and completed the loan deed.
The two loaning agencies pooled ₹ 3,000 crore each to deposit the amount to the accounts of generators which had supplied power to discoms but failed to recover the money. The discoms also furnished to the agencies outstanding dues of ₹ 14,333 crore to various generating companies till March 31 last.
In the process, the National Thermal Power Corporation (NTPC) got ₹ 1,500 crore, Singareni Collieries ₹ 2,400 crore, solar developers ₹ 900 crore, Power Grid Corporation of India ₹ 250 crore, Neyveli Lignite Corporation ₹ 300 crore and others ₹ 650 crore in the first instalment earlier this month, sources said.
They added the second instalment of ₹ 6,000 crore will depend on fulfilment of various conditions laid down by lenders like reduction in transmission and distribution losses of discoms and a commitment by them to reduce the gap in their projected revenue and requirement.
