Two cash-strapped discoms close to Rs 5,000-crore loan

Sources said PFC has determined a loan requirement of Rs 11,006 crore.

Written by Kaunain Sheriff M | New Delhi | Published:April 15, 2015 1:54 am

discom, PFC, reliance world discom, delhi news, city news, delhi newsline, local newsIn what could be a major respite to the two Reliance-owned Delhi discoms, state-run lender Power Finance Corporation (PFC) has “in-principle” sanctioned them a loan of approximately Rs 5,000 crore, sources said.

However, the matter now rests with the government, a 49 per cent stakeholder in the discoms. It needs to give a reassurance to the lending institution that it is aware of the credit facility being sought by the discom and that it supports the decision.

The discoms have been in a tight spot. While the Delhi government has issued a warning to them to provide uninterpreted power, the stations have threatened to cut off the supply due to non-payment of dues. The loan, therefore, is likely to bring relief in this liquidity crisis.

Share This Article
Share
Related Article

Sources told Newsline that PFC is likely to offer a long-term loan to Reliance-owned BSES, after an approval by its boards of directors. BSES had approached the PFC in January for a loan.

Sources said PFC has determined a loan requirement of Rs 11,006. The lender has sanctioned Rs 4,905 crore and the remaining would be syndicated through other financial institutions. The term of the loan will be 7-8 years.

However, the financial arrangement will see the light of the day only when the Delhi government gives the all-important “letter of comfort”. This is a letter issued to a lending institution by a parent company acknowledging support of a subsidiary company’s attempt for financing. However, it does not imply that the parent company guarantees repayment of the loan being sought.

For all the latest Cities News, download Indian Express App

    Live Cricket Scores & Results
    Express Adda