Hyderabad: The Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) agreed to reduce the interest rate from 10.5 per cent to 9.65 per cent on the loan of Rs 40,000 crore extended to the Telangana government for construction of new power plants in the State.
Quality measures adopted by the government in power supply, timely repayment of loan installments and healthy gap between income and debts of the government prompted the corporations to accept the proposal of the State government. With this, the government stands to save Rs 400 crore, TS Genco CMD Prabhakar Rao said on Monday.
PFC representatives met Rao to draft the future course of action for the construction of power plants in after the revised interest rates. PFC is lending Rs 25,000 crore for the 4,000-MW Yadadri power plant, Rs 7,600 crore for the 800-MW Munuguru power plant, Rs 6,800 crore for the seventh unit of Kothagudem power plant and Rs 680 crore for Pulichintala power project.
Rao said generally the corporations extend loans at the rate of 10.5 per cent, but made the concession in the case of Telangana based on its track record. “The corporations extended Rs 40,000 crore for the construction of power plants with total generation capacity of 6,000 MW power in the State,” he said.
The Telangana government submitted a proposal to reduce the interest rates to the two corporations, he said, adding: “Besides, the corporations have also come forward to lend cent per cent loan component”.
As per Chief Minister K Chandrashekhar Rao’s directions, all power plants are being taken up as public sector units. This will ensure power is available at subsidised rates whenever the generating companies make profits. In the private sector, profits are not passed on to the consumers, he said, adding that all power projects in the State are being executed by Genco and BHEL.
Salaries on September 25
For Dasara celebrations, employees of TS Genco and TS Tranco will get their salaries on September 25, Prabhakar Rao said.