Centre relaxes norms for PFC, REC to lend to discoms

0

To supply liquidity to the ability sector, the Cupboard Committee on Financial Affairs on Wednesday accredited a one-time rest to Energy Finance Company and Rural Electrification Company for extending loans to distribution corporations (discoms) above the boundaries of working capital cap of 25% of final yr’s revenues.

“Presently, the ability sector is going through issues… as a result of COVID-19, the consumption of electrical energy has fallen… and payments aren’t being paid on time. State discoms are going through points, so to assist them PFC and REC have been allowed to provide loans above the restrict extra the 25% working capital restrict,” Union Minister Prakash Javdekar mentioned in a briefing. The federal government mentioned the one-time rest will assist present liquidity to the ability sector and guarantee funds by States to discoms. An official assertion famous that the outbreak of COVID-19 and the ensuing lockdown had exacerbated liquidity issues for the ability sector.

“Revenues of energy distribution corporations have nosedived as persons are unable to pay for the electrical energy consumed whereas energy provides…. have been maintained,” it mentioned, including that the vitality consumption has decreased considerably.

Energy sector liquidity just isn’t anticipated to enhance within the brief time period, as financial exercise and energy demand will take a while to choose up. There may be, thus, an instantaneous have to infuse liquidity within the sector for continuedpower provide, it added.

You’ve gotten reached your restrict free of charge articles this month.

To get full entry, please subscribe.

Have already got an account ? Register

Present Much less Plan

Subscription Advantages Embrace

Immediately’s Paper

Discover mobile-friendly model of articles from the day’s newspaper in a single easy-to-read listing.

Sooner pages

Transfer easily between articles as our pages load immediately.

Limitless Entry

Take pleasure in studying as many articles as you would like with none limitations.

Dashboard

A one-stop-shop for seeing the newest updates, and managing your preferences.

Personalised suggestions

A choose listing of articles that match your pursuits and tastes.

Briefing

We transient you on the newest and most essential developments, thrice a day.

*Our Digital Subscription plans don’t at present embody the e-paper ,crossword, iPhone, iPad cell purposes and print. Our plans improve your studying expertise.

LEAVE A REPLY

Please enter your comment!
Please enter your name here