Lok Sabha Question No. 627 (UNSTARRED), answered on 2021-02-04
Subject: Power Finance Commission
Ministry: POWER
Asked by: Anumula Revanth Reddy

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.627 TO BE ANSWERED ON 04.02.2021

## POWER FINANCE COMMISSION

627.   SHRI ANUMULA REVANTH REDDY:

Will the Minister of POWER be pleased to state:

- (a) the details of loans given by Power Finance Commission (PFC) during the last three years and the current year;
- (b) the details of the nature of loans given by PFC; and
- (c) the details of loans given by PFC to the State of Telangana during the said period along with its terms and conditions?

## A N S W E R

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  POWER,  NEW  & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

(SHRI  R.K. SINGH)

(a) & (b) : The details of loans sanctioned and disbursed to Government and Private  Sector  by  Power  Finance  Corporation  (PFC)  during  the  last  three financial  years  viz.  2017-18,  2018-19,  2019-20  and  the  current  financial  year 2020-21 (upto December 2020) are enclosed as Annexure-A.

- (c) : The details of loans sanctioned and disbursed to Government and Private  Sector  by  Power  Finance  Corporation  (PFC)  to  the  State  of  Telangana during  the  last  three  financial  years  viz.  2017-18,  2018-19,  2019-20  and  the current financial year 2020-21 (upto December, 2020) are enclosed as AnnexureB.

A  snapshot  of  key  Terms  &  Conditions  for  Loans  to  Government Sector/Private Sector Projects is enclosed as Annexure-C.

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ANNEXURE-A ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  UNSTARRED QUESTION NO.  627 TO BE ANSWERED IN THE LOK SABHA ON 04.02.2021. ***************

Statement showing the details of loans given to Government and Private Sector by PFC during the last  three  financial  years  viz.  2017-18,  2018-19,  2019-20  and  the  current  financial  year  2020-21 (upto December, 2020 ):-

(Rs. In Crore)

|                   | 2017-18   | 2017-18        | 2018-19   | 2018-19        | 2019-20   | 2019-20        | 2020-21 upto 31.12.2020   | 2020-21 upto 31.12.2020   |
|-------------------|-----------|----------------|-----------|----------------|-----------|----------------|---------------------------|---------------------------|
|                   | Sanction  | Disburse- ment | Sanction  | Disburse- ment | Sanction  | Disburse- ment | Sanction                  | Disburse- ment            |
| Government Sector | 87,680    | 50,079         | 61,765    | 63,161         | 92,820    | 59,180         | 118,608                   | 53,459                    |
| Private Sector    | 10,481    | 14,335         | 15,667    | 4,516          | 18,280    | 8,816          | 24,771                    | 6,485                     |
| Total             | 98,161    | 64,414         | 77,432    | 67,677         | 111,100   | 67,996         | 143,379                   | 59,944                    |

Note:-  PFC's  financing  is  mainly  through  Term  Loans  to  State/  Central/  Private  sector power utilities.

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ANNEXURE-B ANNEXURE REFERRED TO IN REPLY TO PART (c) OF UNSTARRED QUESTION NO. 627 TO BE ANSWERED IN THE LOK SABHA ON 04.02.2021.

***************

Statement showing the details of loans given to Government and Private Sector by PFC to  the  State  of  Telangana  during  the  last  three  financial  years  viz.  2017-18,  2018-19, 2019-20 and the current financial year 2020-21 (upto December, 2020):-

(Rs. In Crore)

|                   | 2017-18   | 2017-18        | 2018-19   | 2018-19        | 2019-20   | 2019-20        | 2020-21 upto 31.12.2020   | 2020-21 upto 31.12.2020   |
|-------------------|-----------|----------------|-----------|----------------|-----------|----------------|---------------------------|---------------------------|
|                   | Sanction  | Disburse- ment | Sanction  | Disburse- ment | Sanction  | Disburse- ment | Sanction                  | Disburse- ment            |
| Government Sector | 15,991    | 8,367          | 14,229    | 16,742         | 21,506    | 14,313         | 14,868                    | 10,395                    |
| Private Sector    | 582       | 1,502          | -         | 233            | 138       | 52             | 210                       | 77                        |
| Total             | 16,573    | 9,869          | 14,229    | 16,975         | 21,644    | 14,365         | 15,078                    | 10,472                    |

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## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF UNSTARRED QUESTION NO. 627 TO BE ANSWERED IN THE LOK SABHA ON 04.02.2021.

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## Snapshot of major Standard Terms & conditions for Loans to Govt. Sector/ Private Sector Projects

| Govt. Sector             | Govt. Sector                                                                                                 |
|--------------------------|--------------------------------------------------------------------------------------------------------------|
| Maximum Loan Eligibility | Upto 80% of total cost for Generation projects and 90% of cost for Transmission/ Distribution Projects.      |
| Moratorium Period        | 1 year from Completion of project for Principal payments. No moratorium on Interest payments                 |
| Repayment Tenor          | Upto 80% of life of Project (i.e. 20 years for a project with 25 years life) including the moratorium period |
| Interest Rate            | Linked to Rating of the borrower (ranges from A++ to C). 3 year/10 year option for Interest reset.           |
| Security                 |  Govt. Guarantee or Charge on assets  Escrow Account for the entire pendency of the loan.                  |
| Additional T&C           |  Based on Promoter & Project appraisal                                                                      |

| Private. Sector          | Private. Sector                                                                                                                                                                                                                                             | Private. Sector                                                                                                                                                                                                                                             |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Maximum Loan Eligibility | Category                                                                                                                                                                                                                                                    | Exposure (as %of project cost)                                                                                                                                                                                                                              |
|                          | Renewable / Transmission*                                                                                                                                                                                                                                   | 50                                                                                                                                                                                                                                                          |
|                          | Thermal                                                                                                                                                                                                                                                     | 20                                                                                                                                                                                                                                                          |
|                          | Hydro                                                                                                                                                                                                                                                       | 25                                                                                                                                                                                                                                                          |
|                          | *In case of solar/wind projects, exposure upto entire debt may be taken on fulfilment of certain criteria.                                                                                                                                                  | *In case of solar/wind projects, exposure upto entire debt may be taken on fulfilment of certain criteria.                                                                                                                                                  |
| Moratorium Period        | 1 year from Completion of project for Principal payments. No moratorium on Interest payments                                                                                                                                                                | 1 year from Completion of project for Principal payments. No moratorium on Interest payments                                                                                                                                                                |
| Repayment Tenor          | Upto 80% of life of Project (i.e. 20 years for a project with 25 years life) including the moratorium period                                                                                                                                                | Upto 80% of life of Project (i.e. 20 years for a project with 25 years life) including the moratorium period                                                                                                                                                |
| Interest Rate            | Linked to Integrated Rating of the borrower (Ranges from IR 1 to IR 5). 1 year/ 3 year/10 year option for Interest reset as per policy.                                                                                                                     | Linked to Integrated Rating of the borrower (Ranges from IR 1 to IR 5). 1 year/ 3 year/10 year option for Interest reset as per policy.                                                                                                                     |
| Security                 |  First Charge on movable and/or immovable assets of Project  Assignment of Project Documents, Debt Service Reserve Accounts etc.  Collateral in the form of pledge of shares up to 76% and Corporate Guarantee/Personal Guarantee depending on appraisal |  First Charge on movable and/or immovable assets of Project  Assignment of Project Documents, Debt Service Reserve Accounts etc.  Collateral in the form of pledge of shares up to 76% and Corporate Guarantee/Personal Guarantee depending on appraisal |
| Additional T&C           |  Based on Promoter & Project appraisal                                                                                                                                                                                                                     |  Based on Promoter & Project appraisal                                                                                                                                                                                                                     |

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