Power sector lending institutions Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have together disbursed around Rs.85,000 crore to discoms so far, under the AtmaNirbhar Package, a reliable media report said.
In the second tranche, beginning January this year, the two institutions have disbursed around Rs 39,000 crore to discoms and electricity departments in Andhra Pradesh, Telangana, Rajasthan, Bihar, Tamil Nadu, Meghalaya and Jammu & Kashmir.
The total size of the package is Rs.1.25 lakh crore, revised upwards from the original Rs.90,000 crore. As of September 22, 2021, the total sanctions by the two lending institutions stood at Rs.1.35 lakh crore, exceeding the scheme’s total outlay.
The top beneficiaries of the scheme so far are distribution entities in Tamil Nadu, Uttar Pradesh, and Bihar. Maharashtra and Karnataka are yet to avail themselves of the loan.
Funding to discoms under the liquidity infusion scheme is designed to be done in two tranches, both special long-term transition loans of tenures up to 10 years.
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For availing the second tranche of assistance, discoms have to submit details of implementation of undertakings given at the time of the first tranche and will have to submit a plan, endorsed by the state government, to bring down AT&C losses over the next 3-4 years. This, in turn, will involve steps to reduce theft and to bring down gap between the Annual Cost of Supply (ACS) and Annual Revenue Realized (ARR).
It is further learnt that some discoms that have managed to secure lower rates that what is being charged by PFC and REC, have not approached the lending entities.
Around a year ago, as of September 16, 2020, the total amount sanctioned by PFC and REC under this scheme was Rs.70,590 crore and the actual disbursements stood at Rs.24,742 crore. At that time, the total size of the scheme was Rs.90,000 crore, which was subsequently enhanced to Rs.1,25,000 crore.
