UPPCL receives Rs 4,900-crore loan from power sector lenders PFC-REC, clears generating companies’ overdues

In a temporary relief, cash-starved Uttar Pradesh Power Corporation (UPPCL) received a loan of Rs 4,900 crore late on Thursday night from the two state-run power sector lenders Power Finance Corporation and REC. The amount was immediately used to partially clear the dues of generating companies (gencos), whose dues were running over 45 days. Among those whose dues were cleared were state generating giant NTPC, PGCIL, independent private power producers as well as cogenerating units run by sugar mills.

While Rs 1,100 crore were given to NTPC, Rs 1,045 crore were given to Bajaj group generating company Lalitpur Power Generation company. Rs 350 crore were given to PGCIL, while NHPC was given Rs 100 crore. Apart from this, Rs 300 crore were used to pay off the entire dues of the sugar cogen units.