On 16th October 2020, Power Finance Corporation Limited(PFC), India’s leading Non-Banking Financial Company(NBFC) owned by Government of India and Jammu Kashmir Power Corporation limited (JKPCL) signed and exchanged an agreement for Liquidity Infusion Scheme under “Aatmanirbhar Bharat Abhiyaan” for the Union Territory(UT) of Jammu and Kashmir(J&K).
The agreement was signed in the presence of Rohit Kansal, Principal Secretary, Power Development Department (PDD) and the officials of Jammu and Kashmir Power Development Department(JKPDD), Kashmir Power Distribution Corporation Limited (KPDCL), Jammu Power Distribution Corporation Ltd (JPDCL), PFC and Rural Electrification Corporation (REC).
Purpose of the agreement:
PFC has sanctioned Rs.2790 Crore to JKPCL for the clearance of the outstanding dues of Central Public Sector Undertaking (CPSU), Power Generating Companies (GENCOs) & Power Transmission Companies (TRANSCOs), Independent Power Producers(IPPs) and Renewable Energy (RE) Generators as on 31st March 2020.
i.The utilities will get the loans at economical rates from PFC and REC under the liquidity infusion of Rs 90000 crore for discoms which was announced by the government in May 2020.
ii.The package of the liquidity infusion was increased to Rs.1.2 lakh crore.
Recent Related News:
On January 17, 2020, a concession agreement was signed in New Delhi for completing the Z-Morh tunnel in the Union Territory (UT) of Jammu and Kashmir(J&K). Under the agreement, Rs.2379 crore has been allocated to complete the construction of the tunnel within 3.5 years.
About Power Finance Corporation Limited(PFC):
Chairman & Managing Director(CMD)– Ravinder Singh Dhillon
Headquarters– New Delhi