UP asks for Rs 20,940 cr loan to help discoms, more states in queue
The Uttar Pradesh government has requested the Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC) for Rs 20,940-crore loan to help its power distribution companies (discoms), seeking a sizeable chunk of the Centre’s bailout package.
The total indicative amount from states for loans under the Atmanirbhar scheme has reached Rs 98,066 crore.
Under the scheme, Union government-owned power sector lenders PFC and REC will give equal loan amounts to states that commit to follow a reforms path indicated by lenders. The money is to be used for paying off dues of power generating companies (gencos).
A senior official said the formal loan applications from all states now totals Rs 87,320 crore.
