Two cash-strapped discoms close to Rs 5,000-crore loan

The discoms have been in a tight spot. While the Delhi government has issued a warning to them to provide uninterpreted power, the stations have threatened to cut off the supply due to non-payment of dues. The loan, therefore, is likely to bring relief in this liquidity crisis.

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Sources told Newsline that PFC is likely to offer a long-term loan to Reliance-owned BSES, after an approval by its boards of directors. BSES had approached the PFC in January for a loan.

Sources said PFC has determined a loan requirement of Rs 11,006. The lender has sanctioned Rs 4,905 crore and the remaining would be syndicated through other financial institutions. The term of the loan will be 7-8 years.

However, the financial arrangement will see the light of the day only when the Delhi government gives the all-important “letter of comfort”. This is a letter issued to a lending institution by a parent company acknowledging support of a subsidiary company’s attempt for financing. However, it does not imply that the parent company guarantees repayment of the loan being sought.