Government-owned Power Finance Corporation Ltd (PFC), India’s leading NBFC, has sanctioned Rs 2790 crore to Jammu Kashmir Power Corporation ltd (JKPCL) for clearing its outstanding dues.
PFC and JKPCL have recently signed and exchanged an agreement for Liquidity Infusion Scheme under ‘Aatmanirbhar Bharat Abhiyaan’ for the Jammu and Kashmir Union Territory. The money sanctioned under the scheme will be used to clear the outstanding dues of CPSU, GENCOs & TRANSCOs, IPPs and RE Generators on 31st March 2020.
The exchange agreement was signed in presence of Rohit Kansal, Principal Secretary, PDD along with senior officers from JKPDD, KPDCL, JPDCL, PFC and REC. In May, the government announced a Rs 90,000 crore liquidity infusion for DISCOMs under which these utilities would get loans at economical rates from PFC and REC. This was an initiative of the government to help GENCOs remain afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore.
PFC is under the administrative control of the Ministry of Power. The corporation was conferred the title of a ‘Navratna CPSE’ in June,2007, and was classified as an Infrastructure Finance Company by the RBI on 28th July, 2010. It plays a crucial role in the rise of India as a global player. The state of Jammu and Kashmir is endowed with significant hydel potential which, when exploited fully, will provide a strong impetus for the growth of its economy.
