State accords government guarantee to TSSPDCL, TSNPDCL for availing special loan
HYDERABAD: The Central Government on Saturday allowed Discoms in Telangana to raise Rs 12,600 crore loan, under Centre’s liquidity infusion scheme up to Rs 90,000 crore for the Discoms in the country.
On May 13, Union Finance Minister Nirmala Sitharaman had announced the loan injection scheme to infuse liquidity into the power sector as part of Atmanirbhar Bharat (self-dependent India) package.
Accordingly, the State sent the proposals to the Centre for raising the loan on Friday and on Saturday, the Centre approved the same, according to TS Genco and Transco CMD Devulapalli Prabhakar Rao. He told Express that they had sought Rs 12,600 crore and the Centre approved the entire amount. Immediately after the Discoms got permission to raise loan, the government issued a GO giving counter guarantee for the loan.
The State government recently enhanced the government guarantees’ limit from 90 to 200 per cent of the total revenue receipts (TRR), by amending the FRBM Act, 2005 through an Ordinance. After that, the first government guarantee was given to Discoms for Rs12,600 crore.
Prabhakar Rao told Express that the loan amount would be used to clear the dues to Central Generating Stations (CGS), independent power producers (IPPs) and renewable energy generators, mostly solar power generators.
The Power Finance Corporation (PFC) CMD recently informed the Energy officials about the special economic package announced by the Centre for Discoms. The PFC framed the policy to offer financial assistance under the liquidity injection package.
After the Centre’s proposals, the CMDs of TSSPDCL and TSNPDCL informed the government that the total outstanding loans due to CPSUs/Gencos/Transcos/IPPs was Rs 14,333 crore. The TS Discoms have to receive Rs 12,609 crore from the State government departments as on March 31, the CMDs told the government.
With the approval from the Centre for the loan requested by the Discoms, Special Chief Secretary (Energy) Ajay Misra issued orders for the government guarantee, for the same. “The government accorded government guarantee to the TSSPDCL and TSNPDCL for availing special long-term loan of Rs 12,600 crore from Power Finance Corporation Ltd and Rural Electrification Corporation Limited. The government guarantee for the loan is subject to repayment and servicing of the loan by the TS Discoms and payment of 2 per cent Commission,” Misra said in the order.