Loans worth Rs 1,180 billion sanctioned under discom liquidity package

Loans worth Rs 1,180 billion have been sanctioned so far by Power Finance Corporation and REC Limited under the liquidity package for stressed power distribution utilities.

According the Payment Ratification and Analysis in Power procurement for bringing Transparency in Invoicing of generators (PRAAPTI) portal, discoms’ total outstanding dues as of September stand at Rs 1,380 billion. Besides the package, in order to give relief to gencos, the government had enforced a payment security mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit for getting power supply. The central government had also given moratorium to discoms for paying dues to power generating firms in view of the Covid-19 induced lockdown. The government had also waived the penal charges for late payment of dues.