PFC to ink Rs 2000 cr fund deal with Mahadiscom today

Power Finance Corporation of India (PFC) will sign an MoU with the state government-owned Maharashtra Distribution Company Ltd (Mahadiscom) on Wednesday for extending loans up to Rs 2,000 crore for modernisation, upgrade and renovation of the distribution system.

In its efforts to reduce the transmission and distribution (T&D) losses, Mahadiscom has chalked out a Rs 11,000 crore system upgrade plan. Under the plan, Mahadiscom proposes to replace old sub-stations, distribution lines transformers etc.

Mahadiscom's T&D losses are currently pegged at 35.21 per cent and the Maharashtra Electricity Regulatory Commission (MERC) has directed the utility to bring it down to 26.75 per cent. Mahadiscom has set the target of reducing T&D losses by 3 per cent every year.

A senior Mahadiscom official said, "PFC is ready to finance our entire Rs 11,000 crore plan and the MoU to be signed tomorrow is for the work which we plan to carry out over two years."