Government financial institutions becoming lenders of last resort


22 April 2020 |

The Ministry of Power is supposedly working on a plan to use central government-owned financial institutions (FIs) including Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and Indian Renewable Energy Development Agency (IREDA) to fund DISCOMs in wake of the Coronavirus disruption. As per news reports, funds would be provided to DISCOMs at concessional cost specifically for clearing dues to the power producers. It is not yet clear what conditions may be attached to such a funding package…


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