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PFC-REC to clear genco dues directly from discom loans

Power sector lenders PFC and REC will use the Rs 90,000-crore loan amount allotted to state-run power distribution companies (discoms) to directly pay power generators (gencos) which owe money from these entities.“The payment shall be released directly to CPSU gencos /RE rencos/IPPs/ CPSU transcos based on authorisation of discoms in this regard,” policy notes separately released by the lenders explaining the disbursal mechanism of the ‘special long-term transition loan to discoms for COVID 19’ said.The Rs 90,000-crore loan was announced by finance minister Nirmala Sitharaman last week to inject liquidity into the electricity sector as a part of the Atmanirbhar Bharat package. Discoms will be eligible for these loans only to the extent of t.....

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