Power discoms may soon get cheap loans from govt to clear Rs 70,000-cr dues
Faced with a demand slowdown and increasing financial stress of the distribution companies, the Centre is considering a new loan window for states to help settle their rising dues to the power generation companies.
Under the new plan, state-run lenders Power Finance Corporation (PFC), Rural Electrification Corp. Ltd (REC) and Indian Renewable Energy Development Agency (IREDA) would offer loans at concessional rates to discoms to settle immediate needs of the generation companies and prevent any disruption in power supplies.
Power producers’ total outstanding dues owed by distribution companies stands at Rs 69,558 crore by September-end 2019. This is growth of 37 per cent over the same month last year, reflecting stress in the sector.
