To approach financial institutions for funding under the National Electricity Fund
Power Finance Corporation (PFC) will soon approach banks and financial institutions to raise Rs 90,000 crore as part of the National Electricity Fund, which was set up for the development of the power sector.
Last year, the government announced setting up of the Fund, entailing a total corpus of Rs 2,25,000 crore.
“Of the total corpus of Rs 2,25,000 crore, PFC is likely to raise Rs 90,000 crore,” power ministry sources said, adding that a Cabinet note had been circulated among the ministries.
According to the terms of reference, the Fund would be utilised to reduce transmission and distribution losses to 15 per cent in the next three years by setting up new electricity transmission lines, transformers, replacing overloaded lines and using new technology.
Power Finance Corp (PFC) and Rural Electrification Corp (REC) are the nodal agencies to finance state utilities.
The Planning Commission had suggested that the support of the World Bank and the Asian Development Bank (ADB) could be sought for improving the electricity transmission and distribution network in the country.