(ET)
The government is considering stricter conditions while extending loans from Power Finance Corp and Rural Electrification Corp to state power distribution companies to help them clear their dues to power generation plants, a senior official said.
“The special loans by PFC and REC will have stricter performance norms like reducing commercial losses, bringing financial discipline, and implementing prepaid metering, besides state government guarantees, timely release of subsidies and timeframe for payment of government department dues,” the official said.
However, distribution utilities of many states are not keen on borrowing money to pay their power bills, officials said.
