State-run Rural Electrification Corp (REC) today said it has inked initial pact with KPCL and BESCO for extending Rs 39,121-crore financial assistance to the power utilities till March 2022.
REC signed the MoUs with Karnataka Power Corp (KPCL) and Bangalore Electricity Supply Company (BESCO) in the presence of Chief Minister of Karnataka Siddaramaiah and state Energy Minister D K Shivakumar on February 3, it said in a statement.
Under the pact, KPCL can avail a debt of Rs 27,121 crore for generation projects and other loan requirements, it said.
While BESCO can avail a debt of Rs 12,000 crore for implementation of distribution projects in the state for strengthening, augmentation, upgradation of distribution infrastructure, sub-transmission system, new distribution, under-ground cabling works and R&M works.
Besides, for works under DDUJGY and IPDS, implementation of smart grid, smart meters, procurement of various materials, creation of distribution infrastructure for releasing agricultural services and working capital/operational funding requirements, special loan requirements and works for smart cities, etc.
Apart from financial assistance, power utilities have agreed to avail consultancy and management services from REC's subsidiaries for their various activities/projects for the next five years.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
