The government of J&K is going to liquidate its entire amount of more than Rs 11000 crore power liabilities taking it as loan assistance. The amount is to be provided by Power Finance Corporation (PFC) Limited and REC Limited. The MoU signing ceremony in this regard was presided over by Principal Secretary, PDD and Information departments, Rohit Kansal.
The agreement for this arrangement was signed between Ali Shah, CGM, PFC Limited and Ajay Kumar, CPM, REC Limited on behalf of their organisations and Mohammad Sultan Malik, Director Finance, PDD and Mohammad Yousuf Baba, Chief Engineer, J&K Power Corporation Limited on behalf of government of J&K.
Kansal complimented the Corporation officials for making it happen within the shortest possible time. He asked them to extend full cooperation to J&K for realising its potential of making J&K a power surplus territory.
The Principal Secretary also commended the PDD officials for working tirelessly to achieve this historic milestone. He said that after receiving the entire loan amount J&K will be able to liquidate the whole liability.
Kansal also advised the distribution companies to work continuously to cut the losses so that liabilities to department do not accrue again. He asked them to take optimum benefit from Centrally Sponsored Schemes for slashing the AT&C losses so that the maximum supply reaches to consumers.
J&K was sanctioned a loan assistance amount of Rs 11024.47 crore against liquidation of power purchase liabilities. He was further informed that after signing of this MoU the first tranche of Rs 5580 crore would be disbursed instantly and the rest amount in second tranche shortly after spending the released amount.
The loan amount is jointly provided by RECL and PFC India under Atmanirbhar Bharat Abhiyan. Once released the entire liability of power will be liquidated, the meeting was apprised.
