State-owned power distribution companies (discoms) received Rs 75,000 crore under the special liquidity scheme announced by the Central government in June, last year.
Under the scheme, government owned lenders Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) extended special one time loan to discoms to clear their due to the power generating companies.
Total loan sanctions crossed Rs 1.3 trillion mark and now the scheme is closed. PFC and REC have cumulatively disbursed Rs 29,500 crore - (Rs14,900 crore by PFC and Rs14,600 crore by REC) in the past two months.
ICICI Securities in a note said, Additional disbursals totalling Rs 29,500 crore in the past two months through the PFC/REC Aatmanirbhar scheme to infuse liquidity into discoms have taken total disbursal in FY21 to Rs75,560 crore. Further, loan sanctions have now reached Rs1.35 trillion, an increase of Rs 10,500 crore during the same period under UDAY limit relaxation, it said.
In June 2020, the Finance Minister under Aatmnirbhar Bharat package to boost the economy, announced a special liquidity infusion scheme for the ailing power distribution sector. The size of the loan scheme was Rs 90,000 crore, for discoms to clear their dues to the power generating companies. PFC and REC lent Rs 45,000 crore each.
The major beneficiaries of the scheme were Uttar Pradesh, Rajasthan and Andhra Pradesh. Additional disbursals have been mainly to UP, Telangana, TN and Bihar. This has resulted in clearing of dues of CPSU gencos, transcos and Coal India.
"Given many discoms are comfortable with the conditions laid out to avail tranche-II loans, disbursals are expected Q1FY22 onwards. NTPC, Coal India and NHPC remain our top picks in PSU space in the sector," ICICI Securities said.
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