State-owned public sector undertaking Power Finance Corporation has agreed to extend another credit line of ₹30,000 crore to Telangana to help complete some of the major ongoing irrigation projects, including Kaleshwaram, Sita Rama and Palamuru-Rangareddy schemes.
Telangana delegation
PFC Chairman Rajeev Sharma is learnt to have given the assurance to a delegation from the State government headed by Chief Secretary SK Joshi in New Delhi on Friday. Principal Secretary (Finance) K Ramakrishna Rao and Chairman and Managing Director of TS-Transco and TS-Genco D Prabhakar Rao were part of the delegation that visited Delhi.
While making out a case for fresh loans, the delegation explained how the State’s Gross State Domestic Product and revenue collection were on the upswing. They also mentioned the State’s financial discipline, while seeking funding for electro-mechanical works of the ongoing irrigation projects.
According to State government officials, PFC agreed to finance ₹30,000 crore on the basis of the State’s potential to repay the loan and the benefits that these projects could bring about to the State’s economy.
Thus far, PFC has extended loans of over ₹40,000 crore to ongoing power and irrigation projects in Telangana.
The break-up shows ₹23,000 crore has been extended for various power projects, including Yadadri and ₹17,000 crore for electro-mechanical works of irrigation projects.
Focus on irrigation
During the meeting, the PFC chief was briefed on how the State government is implementing major projects to facilitate irrigation over 1.25-crore acres in the next few years and has made an allocation of ₹25,000 crore for the irrigation sector in the budget every year.
The proposed credit from PFC is to be deployed for motors, pumps and other electro-mechanical works of the irrigation projects.