Power Finance Corporation has signed a memorandum of understanding with the Centre and increased the target for 1997-98 by 25 per cent to Rs 1,500 crore for disbursements over last year.
The MoU signed between Corporation chairman Uddesh Kohli and power secretary P Abraham yesterday fixed Rs 300 crore for gross margin and Rs 1,850 crore for resource mobilisation, registering a 25 and 50 per cent, respectively, increase over last year, a statement said here.
The government had agreed to provide the Corporation external assistance of Rs 550 crore during 1997-98 and allow issue of bonds of an aggregate value of Rs 400 crore, besides external commercial borrowings of Rs 900 crore.It is in the process of selecting lead managers for the $100-125 million external commercial borrowings. It plans to disburse over Rs 5,000 crore by the end of ninth plan (1997-2002). The corporation has made proposals to the World Bank and ADC for a fresh line of credit.