J&K Borrows Rs 11,000 Cr Loan To Clear Power Dues

Srinagar: Taking advantage of Aatmanirbhar Bharat Abhiyan, the Jammu and Kashmir administration has signed an MoU for loan assistance of more than Rs 11,000 crore against power liabilities.

The amount will be provided by Power Finance Corporation (PFC) Limited and REC Limited, an official spokesman said here on Friday.

He said an MoU in this regard was signed in presence of principal secretary Power Development Department Rohit Kansal.

Kansal complimented the Power Development Corporation officials for making it happen within the shortest possible time. He asked them to extend full cooperation to J&K for realising its potential of making J&K a power surplus territory.

The Principal Secretary also commended the PDD officials for working tirelessly to achieve this historic milestone.

He said that after receiving the entire loan amount J&K will be able to liquidate the whole liability.

Kansal also advised the distribution companies to work continuously to cut the losses so that liabilities to department do not accrue again.

An official spokesman said under ANBA-2020, J&K was sanctioned a loan assistance amount of Rs 11,024.47 crore against liquidation of power purchase liabilities.

After signing of this MoU, the first tranche of Rs 5,580 crore would be disbursed instantly and the rest amount in the second tranche shortly after spending the released amount, he added.

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