Telangana Rural Electrification Corporation, Power Finance Corporation resume release of loans

The public sector undertakings (psus) of telangana executing irrigation and electricity projects have heaved a sigh of relief with the inspiration winning over the rural electrification corporation (rec) and power finance corporation (PFC) to resume disbursement of loans after a gap of nearly six months.

Ongoing works relating 5×800 megawatt yadadri thermal electricity station (ytps) and kaleshwaram assignment have been impacted since the disbursement of loans from the two agencies had been stopped in advance this year following guidelines from the ministry of power (mop) to debtors, telangana nation power generation employer (ts-genco) and kaleshwaram irrigation venture corporation (kipc) to go into into clean tripartite settlement with the creditors and mop for resumption of loan disbursement.

The two corporations had agreements already entered into with the valuable financing psus and the initiatives are beneath execution. “as it’s far works on the ongoing initiatives had been impacted for over 18 months due to the covid-19 pandemic-prompted issues which includes put off inside the movement of cloth and machinery and lack of labour because of go back of employees to their native locations”, a higher official said.

The centre had stopped disbursement of the loans pointing out that the nation’s borrowings had crossed the restrict prescribed below the Fiscal Responsibility and Budget Management (FRBM) Act provisions including the direct borrowings with the aid of it and the borrowings of state psus with its guarantee. The nation, but, has been contesting that as has been the exercise for long as the borrowings of nation psus with state authorities guarantee should no longer be handled for the frbm limit.

The companies on their personal and the state government wrote separately inquiring for the vital psus now not to forestall disbursement of loans committed. Even chief minister okay. Chandrasekhar rao informed the meeting currently that the ministry of heavy industries had written to mop asking no longer to prevent the loans for ongoing projects mentioning that the put off might adversely impact their progress.

It is understood that rec had released ₹992 crore loan instalment to ts-genco closing week and the rec and rfc had additionally expressed their willingness to renew disbursement to kipc looking ahead to receipt of utilisation certificate. Instalment of ₹1,200 crore is due from rec and ₹2,000 from p.C to kipc executing each the kaleshwaram and palamuru-rangareddy lift irrigation proejcts.

While contacted, chairman and MD of ts-genco d. Prabhakar rao said they’d acquired the loans instalment and in turn the genco had paid it to the executing businesses. The utilisation certificate (ucs) were sent long back to rec. They have been making ready to ship the usato p.C in order that another ₹800 crore instalment is released.

Meanwhile, the irrigation department authorities stated that the release of loan by the REC and PFC would help them speed up ongoing works.