Uttar Pradesh and Tamil Nadu are expected to present their detailed plan in the next week to take advantage of the second tranche, the minister added.
Five states have submitted their applications for the second tranche of loans under the Rs 1.25-lakh-crore liquidity infusion scheme which was announced by the Center under the Atmanirbhar Bharat package to settle the quotas of energy distribution companies (discoms ) to electricity generators.
The second tranche of disbursements will be released soon for Andhra Pradesh, Telangana, Rajasthan, Bihar and Manipur, Union energy minister RK Singh told FE. Uttar Pradesh and Tamil Nadu are expected to present their detailed plan in the next week to take advantage of the second tranche, the minister added.
The main beneficiaries who have received loans sanctioned under the scheme include Tamil Nadu (Rs 30,230 crore), Uttar Pradesh (Rs 27,432 crore), Maharashtra (Rs 14,310 crore), Telangana (Rs 12,652 crore), Karnataka (Rs 7,247 crore) and Andhra. Pradesh (6,835 million rupees).
PFC-REC has disbursed up to Rs 46,074 crore to all damaged companies at the end of January under this plan.
Crisis financing under the liquidity injection scheme is designed to be carried out in two tranches, both special long-term transition loans with tenures of up to 10 years.
The release of the first component of the loan is contingent on the respective state government committing to liquidate departmental quotas upon decomposition and to establish a credible mechanism to release subsidies, intended for consumers but directed through shocks, in advance. . The riots will also have to come up with a plan, endorsed by the respective state governments, to reduce their losses.
Stressed riots cannot raise funds at lower rates, even though the interest rate on the special PFC-REC loan will be 150 bp higher than the rate at which they borrow. “Only those states that have met the conditions by receiving the first tranche will be eligible for the second tranche of the loan,” Singh said. Arrears, outstanding of 45 days or more, owed to generators for breakdowns across the country stood at Rs 1.27 million lakh crore at the end of January, 27% more than in the same period last year.
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