PFC to loan J&K Power Corp Rs 2,790 for clearing dues

PFC to loan J&K Power Corp Rs 2,790 for clearing dues

The Power Finance Corporation (PFC) has sanctioned a Rs 2,790 crore loan to the Jammu and Kashmir Power Corporation Ltd (JKPCL) for clearing its outstanding dues.

A Power Ministry statement on Friday said that the PFC and the JKPCL on Friday signed and exchanged an agreement for the Liquidity Infusion Scheme under "Aatmanirbhar Bharat Abhiyaan" for the Union Territory.

The money sanctioned under the scheme will be used to clear the outstanding dues of CPSU, GENCOs & TRANSCOs, IPPs and RE Generators on March 31, 2020.

In May, the Centre had announced a Rs 90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from the PFC and the REC. This was an initiative of the government to help gencos to remain afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore.

Power Finance Corporation Ltd. is an Indian financial institution. Established in 1986, and it serves as  the financial back bone of Indian Power Sector.

Source: IANS