J&K Govt signs MoU for Rs 11000 cr loan to clear power dues

ZT NEWS NETWORK

SRINAGAR: The government of J&K is going to liquidate its entire amount of more than Rs 11000 crore power liabilities through a loan it is raising from Power Finance Corporation (PFC) Limited and REC Limited. The MoU signing ceremony in this regard was presided over by Principal Secretary, PDD and Information departments, Rohit Kansal today.

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.

The Principal Secretary commended the PDD officials for working tirelessly to achieve this historic milestone, adding 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.

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 were present on the ocassion. 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.