The Kerala Power Finance Corporation (KPFC) is planning to announce a fixed deposit scheme within the next two weeks.
The deposits would carry interest rates of 9.5 per cent for one year, 10 per cent for two years and 10.5 per cent for three years. Revealing that the scheme would offer the option of monthly or quarterly payment of interest, a KPFC spokesperson said it would enjoy income tax relief under Section 80L.
Maintaining that the state government has extended a guarantee of Rs 15 crore to the scheme for 10 years, he said that the corporation is targeting to mobilise deposits to the tune of Rs 100 crore in the first year from public, trusts and charitable institutions.
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The corporation is also contemplating issue of non-SLR bonds worth Rs 200 crore having seven-year tenure and the same would be announced as soon as the government guarantee is obtained, he added.
The funds so mobilised would be redeployed for the requirements of the Kerala State Electricity Board (KSEB). While the state government holds a 51 per cent stake in the Rs 23.40 crore paid-up capital of the corporation, KSEB holds the balance 49 per cent.
Kerala has of late been through a transformation in power sector, strengthening generation and transmission and extending distribution to a large percentage of the population, at the same time emphasising on better consumer service.