IPPs seek expansion of loan facilities for discoms

The independent power producers (IPPs) have sought a larger loan facility for discoms in addition to the Rs 1.25 trillion PFC-REC liquidity package at the discoms’ disposal.

The overdues of the state-run discoms to the IPPs have risen by 8 per cent at end-April 2021 to Rs 360.18 billion. The liquidity infusion scheme for the power sector which originally was of Rs 900 billion and meant to cover the dues till March 2020 was expanded to include overdue bills unpaid by discoms till the end of June 2020. The Association of Power Producers (APP) has requested to the Ministry of Power (MoP) to grant an extension of time coverage of liquidity window to cover dues till March 31, 2021, to provide a fallback option to needy states to provide cash liquidity in the system considering that the states are facing a financial burden.