Telangana power utilities urge PFC to reduce interest rates on loans

Telangana State power utilities have appealed to the Power Finance Corporation not to insist on government guarantee for the loans given

Hyderabad: The Telangana State power utilities have appealed to the Power Finance Corporation (PFC) not to insist on government guarantee for the loans given for the purchase and supply of electricity.

This appeal was made by the Chairman and Managing Director of Transco and Genco D Prabhakar Rao at the three-day meeting of the CMDs of Southern Region Power Utilities held from November 17 in Bhopal.

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Rao told the meeting that RBI was considering such government guarantees under the Fiscal Responsibility and Budget Management Act (FRBM), which was affecting power utilities.

He pointed out that 95 per cent of Discoms in the country were running in losses, whereas, Transco and Gencos were in profit, hence it was not right on the part of PFC to evaluate the financial condition of Discoms, while sanctioning loans to Transcos and Gencos.

He stated that the PFC should take into consideration the respective transmission and generation companies while sanctioning loans and the Discoms performance should not be included in it.

Telangana officials have requested the PFC to reduce interest rates against loans given to power utilities. PFC CMD Ravindra Singh Dillon has assured the delegation that he would take the matter to the Centre.

Apart from Prabhakar Rao, Special CS Sunil Sharma, TSSPDCL CMD G Raghuma Reddy and TS Transco JMD C Srinivasa Rao participated in this three-day meeting.