February 20, 2014

Power Finance Corp and Rural Electrification Corp have disbursed transitional loans worth Rs 33,694 crore to state-owned power distribution companies.

Besides, the two state-owned power sector lenders have together subscribed to Uttar Pradesh Power Corp Ltd’s (UPPCL) bonds worth Rs 2,612 crore.

The government is also implementing a financial restructuring plan for discoms.

Under the plan, the state government would take over 50 per cent of outstanding short-term liabilities of the discoms as on March 31, 2012. The remaining half would be rescheduled by the lenders with moratorium on principal payment.

So far Rs 7,142.61 crore has been disbursed to discoms under the Restructured Accelerated Power Development and Reform Programme (APDRP).

The Restructured APDRP was approved in 2008 with total outlay of Rs 51,577 crore keeping focus on actual, demonstrable performance in terms of Aggregate Technical & Commercial loss reduction on sustainable basis of discoms.