PFC and REC plan medium-term concessional loan to discoms

PFC and REC Limited are planning to offer medium-term concessional loans with a two-year moratorium to state-owned discoms to enhance their liquidity, which would be backed by budgetary support from the state governments. This would require easing the Fiscal Responsibility and Budget Management limits for some states that have breached their borrowing limits. The proposal is aimed at infusing liquidity in the power sector amid the coronavirus pandemic.