State-owned Power Finance Corporation on Friday said it has sanctioned Rs 2,790 crore to Jammu & Kashmir Power Corporation Ltd (JKPCL) for clearing its outstanding dues.
The two parties on Friday signed an agreement for the liquidity infusion scheme under Aatmanirbhar Bharat Abhiyaan for Jammu and Kashmir Union Territory, PFC said in a statement.
PFC is the largest non-banking financial corporation (NBFC) in power sector in India.
The money sanctioned under the scheme will be used to clear the outstanding dues of CPSU, gencos and transcos, independent power producers and renewable energy generators as on March 31, 2020.
In May, the government announced Rs 90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from PFC and REC.
This was an initiative of the government to help gencos (power generating companies) remain afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore.