Rs 90,000 cr liquidity infusion breather for power generating companies: CRISIL
The government’s Rs 90,000 crore liquidity infusion into cash-starved power distribution firms is a breather for generating companies and the move will help 9.4 GW private thermal coal capacities from defaulting post moratorium, CRISIL Ratings said on Wednesday.
The move would help clear a chunk of discoms’ obligations to generation companies (gencos), it said in a statement.
The loans are to be provided through Power Finance Corporation (PFC) and REC against receivables of discoms backed by state government guarantees.
According to the statement, the relief comes at a time when 53 GW coal-based power generation capacities of independent producers – excluding 22 GW under debt resolution – are facing the ramifications of the liquidity squeeze at distribution companies (discoms).
