PFC & REC to offer 10-year loans to state discoms at 9.5%

NEW DELHI: Power Finance Corp (PFC) and REC Ltd have decided to offer 10-year loans to state distribution utilities at 9.5% for the next 60 days under the Rs 90,000 crore liquidity infusion package while the government is considering relaxing working capital borrowing limits of power distribution companies.

Sources said the government is considering relaxing the working capital borrowing limit to the extent required for borrowing under the liquidity infusion scheme, subject to a maximum of 35%-40% of a discom’s previous year’s revenue.