New Delhi, June 15 : Rural Electrification Corporation Ltd. (REC), a Central PSU, is one of the leading funding institution for the Maharashtra State Power Utilities and has outstanding loans of more than Rs.16800 Crore as on 31.03.2012.
Rajeev Sharma, CMD, REC held a meeting on 14th June 2012 with the MDs of MSEDCL, MSPGCL and MSETCL at Mumbai to discuss the Capex and Funding Plans of the State Power Utilities for the FY 2012-13. In the meeting, MSPGCL proposed to avail loan from REC for its upcoming 1X660 MW Nasik Replacement Thermal Unit and 250 MW Paras Replacement Thermal Unit.
MSETCL proposed to avail loan from REC for its Transmission Projects worth about Rs.2000 Crore. MSEDCL has already posed the Loan Proposal to REC for funding the INFRA Projects-II of about Rs.5500 Crore.
Although REC expressed its satisfaction over the operational performance of the above State Power Utilities but expressed its concern over the delay in the Tariff Revision by the State Regulator, which is adversely affecting the financial health of the State Power Utilities.
REC also requested the State Power Utilities to seek suitable amendment in the Tariff Regulation so as to remove the 10% cap in the Fuel Adjustment Cost (FAC), which restricts the full recovery of increase in the power purchase cost, which is not the case in other States.