PSPCL seeks Rs 1K Cr loan for a period of 15 years
Kanwar Inder Singh/ April 7,2023
Despite the fact that state government has released all the subsidy amount of Rs 20,200 crore, including an instalment of pending subsidy Rs 1804 crore on March 31,2022, Punjab state power corporation limited (PSPCL) seeks a loan of Rs 1000 crore for the year 2023-24.
Powercom has seek a CAPEX loan (A loan that must be used for capital expenditure like investment in physical assets such as land, buildings and equipment) amounting to Rs 1000 crores for the financial year 2023-24.
As per available information, Punjab state power corporation limited (PSPCL)’s annual plan for the year 2023-24 has been fixed at Rs 1865.94 crore.
Out of these 1865.94 crore, Rs 483.69 are for generation schemes, Rs 350 crore are for transmission schemes and the major amount of Rs 1032.25 crore are for distribution schemes.
Punjab state power corporation limited has asked 26 banks and financial institutions to look into the powercom’s demand for funding its ongoing future generation projects/ R&M schemes, transmission schemes, distribution schemes and offer their best, competitive interest rates for a term loan of Rs 1000 crore for a period of 15 years (including moratorium period of 3 years). Loan will be repaid in 48 equal quarterly instalments after the moratorium period.
Punjab state government is going to be guarantor & Escrow Cover as payment security under Tripartite Escrow agreement amongst Lender, State Bank of India (PSPCL’s main banker) and PSPCL of this Rs 1000 crore loan.
PSPCL seeks Rs 1K Cr loan for a period of 15 years. When contacted the financial advisor, who is the nodal officer of the Punjab state power corporation limited with the banks and financial institutions, he said “ it’s a routine process to seek loan for the capital expenditure by the powercom. As per Punjab state electricity regulatory commission (PSERC) condition, the powercom has to submit a three year plan for capital expenditure in advance. This financial year, work and expenditure has already been approved by the commission and the powercom is seeking the loan for that sanctioned works . These funds are used.”
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(royalpatiala.in News)
