Sending a stern message to state-run power distribution entities (discoms) that refuse to mend their ways and be on a commercially viable path despite several bailout packages, the Union power ministry has told sector-specific lenders PFC-REC that they need not extend any new credit line to the discoms, after the exhaustion of the Rs 90,000-crore liquidity window, if the latter don’t self-correct.
“PFC-REC lending norms have been tightened and the prudential norms have been updated to correspond to the best followed by any financial institution,” Union power minister RK Singh told FE.
