After a long slow-down, in the reopening phase of the economy, the need for power is increasing. Smooth financing being one of the most essential pillars for the growth of the sector, special focus is now being paid on this area. On October 4 and 5 respectively, R.K. Singh, Union Minister of Power and New & Renewable Energy has reviewed the performance of REC Ltd. (a Navratna company under the Ministry of Power) and PFC Ltd. (a Schedule-A Maharatna CPSE). He was also accompanied by the Minister of State for Power Krishan Pal, Secretary Power and Senior Officers of Ministry of Power, and Senior Officers of these CPSEs.
In these meetings, the Union Minister has made it clear that the Union Government is intending to ensure availability of affordable power for all 24×7. Although the oppositions in our country are ever-ready to criticise the present Union Government for its basic intention to privatise the loss-making and/or low potential government entities, it is praiseworthy that the Union Government is not at all drifting from its strategies that have been built upon rigorous evaluation of analyses of the historical evidences, present market scenario and the future potentials.
Singh has advised both PFC and REC to look for ways to reduce their cost of funds – to explore better and cheaper options for raising funds, including from offshore sources, with an overall objective of ensuring that the power sector value chain gets access to cheaper funds. So, I feel the intention of the Union Government is quite admirable, let us watch how the companies translate those into actions.
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