NEW DELHI : Power distribution companies (discoms), hoping to benefit from the ₹90,000 crore loans that finance minister Nirmala Sitharaman said Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) will provide them to help them combat the covid-19-induced stress, are in for a surprise, according to a copy of the document seen by Mint.
The power sector lenders have set stiff conditions to lend money under the scheme. One of them is that a discom should not be owing money to either at the time of availing the loan.
As per the scheme, approved by PFC board on 16 May, the two power sector-focused lenders will give funds in two tranches, each carrying a set of riders. “The primary condition before extending the loan will