PFC signs MoA with MSEDCL for counterpart funding under Revamped Distribution Sector Scheme (RDSS)
Power Finance Corporation Ltd (PFC) has signed a Memorandum of Agreement (MoA) with Maharashtra State Electricity Distribution Company Ltd (MSEDCL), one of the largest power distribution Companies in the country, for counterpart funding under the RDSS, a flagship scheme of Ministry of Power, GoI to improve the operational efficiencies and financial sustainability of the DISCOMs.
As per the MoA, PFC shall provide financial assistance by way of a Rupee Term Loan of ₹ 5259.73 crore to MSEDCL, which is 40% of the project cost for distribution infrastructure works at a competitive interest rate.
PFC is one of the nodal agencies for RDSS and works under the scheme are envisaged to be funded with 60% budgetary support from the Central Govt. & balance 40% through debt as counterpart funding. The Scheme has a total outlay of Rs. 3.03 lakh crore with an estimated Government Budgetary Support of Rs. 97,631 crore from the Central Government.
MoA with MSEDCL is the first loan agreement signed with any state by PFC for counterpart funding under RDSS for which PFC is the nodal agency and also indicates the determination of MSEDCL for implementation of the scheme in a timely manner.
The MoA has been signed in the presence of Smt. Parminder Chopra, CMD PFC, Shri Manoj Sharma, Director (Commercial), PFC, Shri AnudeepDighe, Director (Finance), MSEDCL and senior officials of PFC & MSEDCL.
The MoA underlines PFC’s commitment towards playing a pivotal role in supporting the efforts of DISCOMs to achieve operational efficiency & sustainability.