Power Finance Corporation (PFC) has set a target of Rs 7,500 crore for sanctioning loans to power sector projects during the next financial year.
Disbursements during 2002-03 are likely to be around Rs 4,500 crore, according to the performance memorandum of understanding (MoU) signed by the PFC with the government. The MoU was signed by PFC chairman and managing director A A Khan and power secretary A K Basu here today. PFC will raise about Rs 2,620 crore through market borrowings during the fiscal.
During the first 11 months of the current fiscal, PFC has sanctioned loans to the tune of Rs 8,606 crore as against the target of Rs 6,650 crore. Disbursements during April 2001-February 2002 were Rs 3,354 crore against the target of Rs 4,030 crore. PFC raised Rs 3,370 crore from the markets during the first 11 months of 2001-02 as against the target of Rs 2,400 crore, company officials said.
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PFC had set a target of disbursing Rs 1,200 crore under the Accelerated Generation and Supply Programme in 2002-03, officials said.
The ministry of power has approached the cabinet for the extension of the accelerated generation and supply programme (AG&SP) to the Tenth Five-Year Plan. The programme, which was kicked off in the first year of the current Plan period, has been a major success with states.
The interest rate charged by PFC on loans for qualified category of projects through the programme was 4 per cent less than its prevailing lending rates, officials said. The scheme had great potential of raising investments due to its in-built subsidy provision on the interest on loans, officials said.
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