REC, PFC didn’t conduct appropriate due diligence: CAG
Rural Electrification Corporation Limited (REC) and Power Finance Corporation Limited (PFC) did not conduct appropriate due diligence during credit appraisal in power generation projects and in the process assumed higher risks on the loan accounts, noted the Comptroller and Auditor General (CAG) in a report. Participation of private sector in power generation grew significantly with the enactment of the Electricity Act, 2003. REC and PFC also participated in these projects as lenders. Over 2013-14 to 2015-16, REC and PFC disbursed loans amounting to Rs 47,706.88 crore to Independent Power Producers (IPPs), said report No.34 of 2017 - Compliance audit Union Government Loans to Independent Power Producers by Rural Electrification.A significan.....