Loans worth Rs 1,250 billion sanctioned under discoms liquidity package

Power Finance Corporation (PFC) Limited and REC Limited have sanctioned loans worth Rs 1,250 billion under the liquidity package for stressed discoms. As of January 27, 2021, REC and PFC have sanctioned Rs 659.32 billion and Rs 590.67 billion respectively, while they have disbursed Rs 242.04 billion and Rs 218.7 billion, respectively.

The government has allowed solar and wind-based generation projects to avail of transmission charge waivers even if they fail to set up their plants on or before June 30, 2023, the deadline set for projects to receive this benefit. This move is seen to benefit about 6,000 MW of solar projects that are currently facing delays in construction due to issues such as land unavailability, inadequate transmission capacity and supply disruptions due to Covid-19. Earlier in August 2020, the power ministry had waived off inter-state transmission system charges and losses on all solar and wind projects commissioned before June 30, 2023.