Centre sanctions loans worth Rs 68,000 cr under discoms liquidity package
REC has already sanctioned more than Rs 30,000 crore till 31 July 2020, as part of the liquidity
The Central government has sanctioned as much as Rs 68,000 crore worth loans under Rs 90,000 liquidity package announced for the stressed power distribution utilities.
Union Minister of Finance Nirmala Sitharaman in May 2020 had announced the Rs 90,000 crore liquidity infusion into cash-strapped discoms facing demand slump due to the lockdown to contain COVID-19.
The state-run non-banking finance firms REC and the Power Finance Corporation (PFC) have sanctioned loans worth about Rs 68,000 crore so far under the liquidity infusion package for discoms.
REC has already sanctioned more than Rs 30,000 crore till 31 July 2020, as part of the liquidity.
The loans under the package will be co-funded by PFC and REC in equal proportion. The loans will be sanctioned in two equal tranches. The package was announced on 13 May 2020.
The first tranche of credit has also been released to Andhra Pradesh, Telangana and Uttar Pradesh.
The Rs 90,000 crore package will be fully utilised after Tamil Nadu (Rs 20,000 crore) and Bihar (Rs 3,500 crore) submit their formal proposals under the package.
Uttar Pradesh tops the chart for seeking the highest credit under the package so far at Rs 20,000 crore followed by Telangana (Rs 12,000 crore), Karnataka (Rs 7,000 crore), Andhra Pradesh (Rs 6,000 crore), Maharashtra (Rs 5,000 crore). Punjab, Rajasthan and Jammu & Kashmir have sought around Rs 4,000 crore each.