PFC and REC working on loans for state power discoms

Power Finance Corporation Limited (PFC) and REC Limited are working on loans for state electricity distribution companies to help them pay their electricity dues.

The state power distribution companies have Rs 1,180 billion electricity dues to power producers. The medium-to long-term loans from these financiers will be made available to states that participate in the power ministry’s dues liquidation scheme. Special loan products are being worked upon to enable the power distribution companies participating in the dues restructuring programme to make timely payment of current dues. Interest rates for the revolving credit would vary depending on the credit rating of the borrowers.