Power Finance Corporation Limited (PFC) has sanctioned ₹2,790 crore to Jammu Kashmir Power Corporation Limited (JKPCL) for clearing its outstanding dues.
An official statement said that PFC and JKPCL signed and exchanged an agreement for Liquidity Infusion Scheme under the Aatmanirbhar Bharat Abhiyaan for the Jammu and Kashmir Union Territory. The money sanctioned under the scheme will be used to clear the outstanding dues of power generation dues as on March 31, 2020.
In May, the government announced a ₹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 power generation companies to remain afloat. Later, the liquidity infusion package was increased to ₹1.2 lakh crore.