Rs 68,000 crore loans have been sanctioned so far under Rs 90,000 liquidity scheme for the stressed power distribution utilities , a source stated.
In May, Finance Minister Nirmala Sitharaman announced Rs 90,000 crore liquidity infusion to discoms due to the lockdown to COVID-19.The amount was used by DISCOMS to pay their dues to Transmission and Generation companies.
“State-run non-banking finance firms REC Ltd NSE 2.22 % and Power Finance Corporation NSE 2.17 % (PFC) have sanctioned loans worth about Rs 68,000 crore so far under the Rs 90,000 crore liquidity infusion package for discoms announced in May,” a source said to PTI.
Earlier this week, REC Ltd had stated in a regulatory filing that, “The company has already sanctioned amounts of more than Rs 30,000 crore till July 31, 2020, as part of this liquidity package to discoms.”
The loans under the package will be co-funded by PFC and REC and would be sanctioned in two equal tranches.
The source further informed that, “The first tranche of credit has also been released to Andhra Pradesh, Telangana and Uttar Pradesh.”
“The Rs 90,000 crore package would be fully utilised after Tamil Nadu (Rs 20,000 crore) and Bihar (Rs 3,500 crore) submit their formal proposals under the package,” the source added.
Uttar Pradesh tops the chart for seeking the highest credit under the package so far at Rs 20,000 crore followed by Telangana (Rs 12,000 crore), Karnataka (Rs 7,000 crore), Andhra Pradesh (Rs 6,000 crore), Maharashtra (Rs 5,000 crore). Punjab, Rajasthan and Jammu & Kashmir have sought around Rs 4,000 crore each.
Earlier, Union Ministry of Power has written to all States/UTs regarding extension of Rs 90,000 crore financial package to assist the stressed DISCOMs. Communication on 14.05.2020.Under this intervention, REC and PFC would extend special long term transition loans up to 10 years to DISCOMs.
The source said, “The power ministry has not issued formal orders to increase the package so far. The two firms are considering state proposals for loans under a package with an overall limit of Rs 90,000 crore.”