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Loans worth Rs 1.08 lakh crore sanctioned under discom liquidity package

In May, Finance Minister Nirmala Sitharaman announced Rs 90,000 crore liquidity infusion into cash-strapped discoms, facing demand slump due to the lockdown to contain COVID-19

Loans worth Rs 1.08 lakh crore sanctioned under discom liquidity package

As much as Rs 1.08 lakh crore worth of loans under the liquidity package for stressed power distribution utilities have been sanctioned so far, REC said on Saturday.In May, Finance Minister Nirmala Sitharaman announced Rs 90,000 crore liquidity infusion into cash-strapped discoms, facing demand slump due to the lockdown to contain COVID-19.

This package was later increased to Rs 1.2 lakh crore by the Ministry of Power.

"Till date, REC and PFC (Power Finance Corporation) have sanctioned Rs 1.08 lakh crore and released nearly Rs 30,000 crore to discoms under the scheme," REC said in a statement.

The loans under the package will be co-funded by PFC and REC in equal proportion. The loans would be sanctioned in two equal tranches.

REC also said it has sanctioned Rs 2,790 crore to Jammu Kashmir Power Corporation Ltd (JKPCL) under the scheme.

The agreement was signed between the Government of Jammu & Kashmir, JKPCL, REC and PFC.

Under the liquidity infusion scheme of the Centre, REC and PFC are extending financial assistance at a concessional rate of interest, it added.

ALSO READ: Discoms' liquidity package to be hiked to Rs 1.2 lakh crore this month

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