R.K. Singh, Union Minister of Power and New & Renewable Energy reviewed the performance of state-owned Power Finance Corporation (PFC) and REC.
He asked both the non-banking finacial companies to explore cheaper options for raising funds, including offshore sources and to focus on ensuring that the power sector value chain gets access to cheaper funds, particularly renewable energy.
He directed the companies to carry out a strategic analysis to adapt to the changed business environment in the power sector.
The minister highlighted the government’s vision to make available affordable power for all round-the-clock, according to the statement.
He advised that both the organisations should be nimble-footed and dynamically adapt to the changing market needs, increasing renewables, and make efforts to reduce their cost of funds.
He emphasized both PFC and REC to increase their outreach by establishing a physical presence across the country.
Further, Singh also expressed his concern at the finances of some Distribution Companies and suggested remedial measures to PFC and REC, including establishing presence of their lender nominees in the Board of Directors of DISCOMs of concern.