Do not insist on ensures for loans to continual distribution agencies: Southern Regional Energy Committee chairman D Prabhakar Rao | Hyderabad Information

HYDERABAD: Southern Regional Energy Committee (SRPC) chairman D Prabhakar Rao has recommended the Energy Finance Company (PFC) to not insist on state ensures for granting loans to the facility distribution agencies.
He mentioned the state govt ensures to the discoms had been additionally being bracketed beneath the Fiscal Duty and Finances Control (FRBM) laws by way of the Centre. Talking on the SRPC utilities’ assembly held in Bhopal, Rao mentioned 95% of the discoms within the nation had been struggling losses whilst Gencos and Transcos had been in income.
“It isn’t proper to believe discoms’ income and losses whilst granting loans to Transco and Gencos within the states by way of the PFC. Each can’t be connected,” he mentioned, which was once supported by way of more than a few states. The discoms recommended PFC to scale back the rates of interest at the loans. tnn