(a) whether the Government has approved a one-time relaxation on the limit of working capital loans extended to State-owned distribution companies by the Power Finance Corporation and the Rural Electrification Corporation; and
(b) if so, the details thereof?
THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP
( SHRI R.K. SINGH)
(a) & (b): Yes, Sir. Government of India has approved a one-time relaxation to Power Finance Corporation (PFC) Ltd. and Rural Electrification Corporation (REC) Ltd. for extending loans to Power Distribution Companies (DISCOMs) above limits of working capital of 25% of last year’s revenues imposed under Ujwal Discom Assurance Yojana (UDAY) to discharge their liabilities as existing on 30.06.2020 in favour of Central Public Sector Undertaking (CPSU) Generation (Genco) & Transmission Companies (Transcos), Independent Power Producers (IPPs) and Renewable Energy (RE) generators, with the proviso that these loans above the 25% limit will not be counted against the working capital limit imposed under UDAY till the loans are repaid.
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