This is the largest loan application made so far by any state distribution company under the scheme. Tamil Nadu has asked the Centre to relax borrowing cap and has shown intent to borrow about Rs 20,622 crore. The power ministry has approached the Cabinet for the relaxations and the matter is likely to be taken up soon.
So far Rs 46,400 crore loan applications have been received by REC Ltd and PFC, of which Rs 34,300 crore have been sanctioned. Close to Rs 11,220 crore have been disbursed by the two financial institutions, sources said.
So far, the two financiers have sanctioned Rs 6,600 crore to Andhra Pradesh discoms, of which Rs 3,286 crore has been disbursed; Rs 12,650 crore to Telengana, of which Rs 5,436 crore has been disbursed; and Rs 5,000 crore to sanctioned to Maharashtra, of which Rs 2,500 crore has been disbursed.
The disbursements are made directly to the power generating companies by PFC and REC on behalf of the distribution companies.
Other sanctioned loans include Rs 111 crore to Manipur, Rs 4,000 crore to Punjab, Rs 4,063 crore to Rajasthan, Rs 1,021 crore to West Bengal and Rs 800 crore to Uttarakhand.
Besides Uttar Pradesh, applications of Jammu and Kashmir for Rs 4,580 crore, Karnataka for Rs 7,246 crore and Odisha for Rs 309 crore are also under processing, the sources said.
The sources said states distribution companies have evinced interest to avail Rs 97,653 crore loans under against the Rs 90,000 crore offered under the Atmanirbhar Bharat Scheme. More discoms are likely to approach the two financial institutions with applications after getting permissions for state guarantees which is a pre-requisite for availing the loans.
Tamil Nadu, Bihar and Odisha, which do not have headroom for borrowing and adequate receivables from state governments, have approached the Union power ministry seeking exemption from working capital limits. The Cabinet is soon likely to consider proposal for one-time relaxation of working capital lending limit by REC and PFC to discoms. Currently, banks and financial institutions can lend only 25% of a discom’s revenue in the previous year for working capital.
PFC and REC are offering loans under the liquidity package at 8.75% for three-year loans, 9% for five year loans, 9.25% for seven years and 9.5% for 10-year term loans. The interest rates will be valid for the next 60 days and the loans have to be used to pay the power bills.
Government data shows that discoms dues were to power plants were at Rs 98,000 crore at the end of March. The total receivables of discoms from state governments as subsidies and from various government departments electricity bills is over Rs 1,00,000 crore.
The dues to gencos have increased to Rs 1,17,477 crore at the end of May. In a recent meeting with power minister R K Singh, states demanded loans to repay loans of April and May 2020 too.