The Centre is considering a proposal to extend a special loan from Power Finance Corporation (PFC) to major defaulter States including Tamil Nadu, UP, Rajasthan, AP, Telangana, Maharashtra and Haryana in a bid to clear outstanding dues to private power producers.
Top industry sources told BusinessLine that a proposal to this effect was discussed at a recent meeting between senior officials of the Power Ministry and representatives of power producers.
“A new payment security mechanism is being set up which provides a breather to the independent power producers by potentially halting any further increase in the huge quantum of receivables, though the real success of this mechanism would be revealed once the August bills become due for payment.
