Hyderabad: The Telangana Transmission Corporation of and Generation Company (TS-TRANSCO and GENCO) officials have urged the Power Finance Corporation (PFC) to reduce the interest rate on the loans taken by the power utilities in a meeting.
The Telangana power utility officials informed PFC that power companies such as Transco and Genco have been asked for the government’s guarantee in several cases of power purchase and supply.
The officials have requested the PFC officials to withdraw the government guarantee highlighting that as per Reserve Bank of India’s (RBI) regulations, the guarantee given by the government is also shown in the Fiscal Responsibility and Budget Management (FRBM) limit.
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PFC chairman and managing director. Ravinder Singh Dhillan hosted a meeting with Southern Region power Utilities in Bhopal. Southern Regional Power Committee chairman and TS-TRANSCO and GENCO chief managing director, D Prabhakar Rao and junior managing director, C Srinivas Rao, among others attended the meeting.
The Telangana officials said that 95 percent of the Discoms in the country were in losses and in some states, the Genco and Transco companies are in profits.
The officials further informed PFC that the latest decision to consider the financial condition of the Discoms in the matter of loans to Transco and Genco will have an impact on the said companies.
Telangana Chairman and Managing Director said that Transco and Genco should not be linked with the Discoms and hence the financial status of the concerned company should only be taken into consideration.
The PFC officials, after hearing all the issues thoroughly, said that they would bring the issues to the notice of the Central Government and follow up with a decision.