(T.E.T)
State-owned power sector financiers Power Finance Corp and REC NSE 0.29 % Ltd have reduced their lending rates across all types of loans by 40 bps to boost renewable energy development, an official statement said.
In the last about one year, both the organisations have reduced lending rates cumulatively by upto 3%, it said.
“In order to give a boost to renewable energy, where long term funding is required, the rates have been revised to as low as 8.25%,” the statement said.
The reduction in rates has been possible due to lower cost of borrowings by these organisations, in the past year or so. PFC NSE 0.00 % and REC are providing short-term loans at an interest rate of 6.25%.
Power and renewable energy minister R K Singh said, “Continued reduction of lending rates by REC and PFC will help power utilities to borrow at competitive rates and invest in improving the power sector infrastructure, thereby benefitting the consumer by way of reliable and cheap power.”
