First tranche of Rs 5580 Cr released by PFC & REC
SRINAGAR, OCTOBER 16: Taking full advantage of Atmanirbhar Bharat Abhiyan (ANBA) the government of J&K liquidates its entire amount of more than Rs 11000 crore power liabilities taking it as loan assistance. The amount is provided by Power Finance Corporation (PFC) Limited and REC Limited. The MoU signing ceremony 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.
MD, KPDCL, Mohammad Ajaz Asad; Chief Engineer, KPDCL, Aijaz Ahmad Dar; Chief Engineer, Projects, Javaid Yousuf Dar; Secretary Technical PDD, Bashir Ahmad Dar and other officers of the department.
Ravinder Singh Dhillon, CMD, PFC; SK Gupta, CMD, REC; Yasha Mudgal, MD, JPDCL; PK Singh, Director Commercial, PFC; R. Laxmanan, Executive Director REC; Manoj Sinha, Executive Director, PFC joined the ceremony through a video link.
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.
He further asked the officers to work in tandem with each other so that whole amount is disbursed within the set timeline. He urged them to invest the resources and potential spared by this step in making J&K a self sufficient in electricity.
On the occasion the Principal Secretary was informed that under ANBA, 2020 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.
Moreover it was given out that this will substantially help in improving the optimum power purchasing mechanism in J&K besides better power management here.
The meeting resolved that it will be a big push towards infusing a new lease of life into the department and will realise the goal of achieving 24*7 reliable and quality power supply to consumers of J&K and Ladakh.