The Central government is looking to arrange low-cost finance for its Rs 90,000 crore liquidity infusion plan to prevent blackouts as power generation plants are running out of cash amid a nationwide lockdown.
The Ministry of Power has sought bonds under special window to the sector besides funds from multi-lateral agencies and institutions like Life Insurance Corporation of India (LIC), Employees' Provident Fund Organisation (EPFO) and National Social Security Fund (NSSF) for the scheme.
The loans are sought to be made available to the Power Finance Corporation (PFC) and REC, the two sectoral lending institutions in the Indian power sector, for onward concessional lending to state electricity distribution utilities to help them clear bills of power generating companies.
The Ministry of Power has also sought relaxation of exposure norms for banks and financial institutions to lend to state-run PFC and its subsidiary REC.