For the first time PSPCL seeks loan for “Purchase of Power”
Kanwar Inder Singh/ royalpatiala.in
Due to ongoing power crises in the state, Punjab state power corporation limited has intended to avail short term loan for “Purchase of Power”.
“Last year, September 2021, then CMD PSPCL A.Venu Prasad had disclosed that Punjab State Power Corporation Limited has earned a profit of Rs. 1446 crores for the year 2020-21 against the loss of Rs. 1158 crores in the year 2019-20. It seems the hard earned profit goes in free power” said a retired powercom employee.
PSPCL has to purchase power to meet the surging demand of electricity. For this the powercom needs money as they have to make the payment on daily basis or within seven day. If they fail in making timely payment, they will not get the power from central pool in peak season, on time. With the paddy season is approaching, shortage of coal in state owned, private thermal plants it seems to be tough days ahead for the powercom.
In peak season, PSPCL purchase power on high rates from central pool. But recently, Central Electricity Regulatory Commission (CERC), Indian power regulator has capped electricity exchange prices at Rs 12 per unit amid rising costs of imported coal and sure in power demand as the summer season has started, has given some respite to the powercom authorities.
As per sources, this is for the first time that the Punjab state power corporation limited has seek short term loan particularly for “ Purchase of Power”. In routine they avail loans on regular basis for other purposes but not for Purchase of Power.
As per the documents, Punjab state power corporation limited “intends to avail short term loan of Rs 500 Crore for its working Capital requirements. The purpose of the loan is clearly mentioned as “Purchase of Power”, for one year. For this the powercom has demanded quotations from 22 banks, financial agencies, finance providers etc.
For this Rs 500 crore short term loan, Escrow Cover (an escrow is a contractual arrangement in which a third party (the stakeholder or escrow agent) receives and disburses money or property for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties. It’s the deed that a third party held until a transaction was completed.)as payment security for Principal & interest liability under Tripartite Escrow Agreement amongst Lender, State Bank of India (PSPCL’s main banker) and PSPCL.
For the first time PSPCL seeks loan for “Purchase of Power”. As per the PSPCL condition, the said Loan will be paid in 6 equal monthly installments after moratorium period.
When contacted Jatinder Goyal, Director Finance of Punjab state Power Corporation limited, he denied it, that powercom has seek any loan particularly for Purchase of Power. When asked director finance that the royalpatiala.in has document, letter where it is mentioned that powercom has intended to avail short term loan for Purchase of Power, he said PSPCL is availing working capital loan, capex loan on regular basis. The powercom seeks loan for repayment of loan as the corporation has an outstanding of 16K-17K crore. So, we never intended to avail loan for “Purchase of Power.”
April 14,2022
