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Chairmen and Managing Directors (CMDs) of several power utilities of Telangana have requested the Power Financial Corporation (PFC) to rethink over linking the financial position of Distribution Companies (Discoms) while lending to Generation and Transmission Coporations (Gencos and Transcos) as all the Gencos and Transcos are running in profits.
The request was made at a meeting being held by the PFC with the CMDs of SoutherN Region power utilities at Bhopal in Madhya Pradesh from November 17 to 19. Special Chief Secretary (Energy) Sunil Sharma, Chairman of the Souther Regional Power Corporation (SRPC) and CMD of TS-Genco and TS-Genco D. Prabhakar Rao, Joint MD of TS-Transco C. Srinivasa Rao and CMD of Southern Discom G. Raghuma Reddy participated from Telangana.
The meeting organised to discuss the implementation of guidelines related to lending to power utilities by PFC, shortcomings and changes. The authorities of Telangana utilities said the lending organisations were seeking government guarantee for lending the power purchases and supply and such guarantees were being shown under the borrowings under FRBM purview.
Speaking at the meeting on Friday, Mr. Prabhakar Rao said 95% of the Discoms in the country were in losses and linking their financial position with lending to Gencos and Transcos in profits was having adverse impact on the borrowings of the Gencos and Transcos. He urged the PFC to consider the financial position of only Gencos and Transcos while lending them.
Further, he requested the PFC to reduce the interest rate being charged for borrowings by power utilities. CMD of PFC Ravinder Singh Dhillion and other Directors assured that they would take the issues raised by Southern Region utilities to the notice of the Centre (Ministry of Power). The authorities of Andhra Pradesh, Tamil Nadu, Karnataka, Kerala and Puducherry also attended the meet.
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