Andhra Pradesh

‘PFC and REC officials arriving to recover loans from Discoms’

Public Accounts Committee Chairman Payyavula Keshav addressing the media in Anantapur on Tuesday.   | Photo Credit: R.V.S. PRASAD

Andhra Pradesh Public Accounts Committee Chairman Payyavula Keshav on Tuesday said that officials of the Power Finance Corporation Ltd. (PFC) and the Rural Electrification Corporation Limited (REC) would be arriving in Vijayawada “either tonight or tomorrow (Wednesday)” to recover the loans given to the power distribution companies (Discoms) in the State.

Addressing the media here, Mr. Keshav, who is also TDP Uravakonda legislator, said that the officials were forced to come from New Delhi to recover the instalments as payments were due for a long time.

“Usually, it happens when the loans turn NPAs after crossing the 90-day limit,” Mr. Keshav said.

“Details of the loan amounts and the exact instalments to be paid annually must be made public by the government,” he said.

“Blaming the TDP for everything does not solve any problem,” he said, and added that the government must explain what it was doing through its actions.

“The loans obtained from the PFC and REC seem to have vanished into thin air as no development is visible on the ground. Finance Minister Buggana Rajendranath Reddy must explain why such a situation has cropped up,” Mr. Keshav said.

“There is no problem in availing of loans for development, without crossing the RBI’s Fiscal Responsibility and Budget Management (FRBM) limits. If the loans are gainfully invested, people will reap the fruits,” he observed.

He objected to the A.P. Electricity Regulation Commission (APERC) approving in a single day a ₹30,000-crore proposal, which usually takes one year in other States.

He further said that the government should give more clarity on the 9000 MW power procurement proposal from the Solar Energy Corporation of India Ltd.

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Printable version | Jan 25, 2022 4:16:55 PM |

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