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Five states to obtain second tranche of PFC-REC mortgage

Uttar Pradesh and Tamil Nadu are anticipated to current their detailed plan within the coming week to avail the second tranche, the minister added.

Five states have filed their requests for the second tranche of loans underneath the Rs 1.25-lakh-crore liquidity infusion scheme which was introduced by the Centre underneath the Atmanirbhar Bharat bundle to clear the dues of energy distribution corporations (discoms) to electrical energy mills.

The second tranche of disbursals might be launched quickly for Andhra Pradesh, Telangana, Rajasthan, Bihar and Manipur, Union energy minister RK Singh instructed FE. Uttar Pradesh and Tamil Nadu are anticipated to current their detailed plan within the coming week to avail the second tranche, the minister added.

The main beneficiaries which have been sanctioned loans underneath the scheme embody Tamil Nadu (Rs 30,230 crore), Uttar Pradesh (Rs 27,432 crore), Maharashtra (Rs 14,310 crore), Telangana (Rs 12,652 crore), Karnataka (Rs 7,247 crore) and Andhra Pradesh (Rs 6,835 crore).

As a lot as Rs 46,074 crore has been disbursed to all of the discoms by PFC-REC as on January-end underneath this scheme.
Funding to discoms underneath the liquidity infusion scheme are designed to be achieved in two tranches, each particular long-term transition loans of tenures as much as 10 years.

The launch of the primary part of the mortgage is contingent on the respective state authorities enterprise to clear the departmental dues to its discom, and putting in a reputable mechanism to launch the subsidies — meant for the shoppers however routed by the discoms — prematurely. The discoms may even need to provide you with a plan, endorsed by the respective state governments, to cut back their losses.

Stressed discoms can not elevate funds at cheaper charges, despite the fact that rate of interest on the particular PFC-REC mortgage might be 150 bps increased than the speed at which they borrow. “Only those states which have complied with the conditions while receiving the first tranche will be eligible to get the second tranche of the loan,” Singh mentioned. Overdues — excellent of 45 days or extra — owed to mills by discoms throughout the nation stood at Rs 1.27 lakh crore at January finish, 27% increased than the identical interval in final yr.

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