The Union Power Ministry on Wednesday asked leading power companies Power Finance Corporation (PFC) and REC (Rural Electrification Corporation) for a speedy resolution of its stressed assets at a fair value with a minimal haircut in the line of national interests.
In a review meeting of the two Central Public Sector Units(CPSU), Union Power Minister R K Singh asked companies to consider a series of measures including resolution of stressed assets at a fair value with a minimal haircut. He also asked CPSEs to explore better and cheaper options for raising funds to ensure that the power sector value chain gets access to cheaper funds. The companies could look for offshore sources for funding, the minister added.
He told them to carry out a strategic analysis to adapt to the changing business environment in the Sector with an overall objective to deliver power to consumers at a reasonable cost.
REC and PFC must increase their outreach by establishing a physical presence across the country, the Minister said. Apart from this, he further directed that the system of oversight on the projects funded by PFC and REC must be tightened.
The Minister also expressed his concern about the finances of some Distribution Companies and told them to take urgent remedial measures, including establishing the presence of their lender nominees in the Board of Directors of DISCOMs of concern.
R K Singh said the government is targeting to make available affordable power for all by improving competitiveness in the power sector. He advised that both the organizations should be nimble-footed and dynamically adapt to the changing market needs, increasing renewables, and make efforts to reduce their cost of funds.