The Government may prod Power Finance Corporation (PFC) to extend ‘special funds’ to some of the stressed electricity distribution entities (discoms) in order to enable them to cut the dues to power producers. Sources said as part of this effort, PFC may extend fresh loans to the Tamil Nadu Generation and Distribution Company (TANGEDCO) to help the discom pay off part of its dues. TANGEDCO’s dues to gencos stand at Rs 9,800 crore.
A senior TANGEDCO official said, “We have shared the details with the government about the pending past dues. However, we are not sure of the timeline by when it will be done.” The government, according to this official, was also working on a similar plan for Telangana and Andhra Pradesh discoms as well. PFC is likely to lend between 10-11% rate of interest.
