NEW DELHI: Power distribution companies (discoms), hoping to benefit from the Rs90,000 crore loans that Finance Minister Nirmala Sitharaman said PFC and REC will provide them to help them combat the covid-19-induced stress, are in for a surprise, according to a copy of the document seen by Mint. The power sector lenders have set stiff conditions to lend money under the scheme. One of them is that a distributor should not be owing money to either at the time of availing the loan.
As per the scheme, approved by Power Finance Corporation (PFC) board at its 16 May meet, the two power sector-focused lenders will give funds in two tranches, each carrying a set of riders. “The primary condition before extending the loan will be that the borrower should not have any overdues to PFC or REC (Rural Electrification Corporation),” an official familiar with the development told Mint.
