PFC takes several measures to bail out Thermal & Hydro Power Plants

In order to bail out thermal and hydro power plants which are facing cost and time overruns and do not have adequate funds, Power Finance Corporation (PFC) has announced that it is taking various actions based on requirements. This includes, inter-alia, higher Debt/Equity ratio of funding up to 80:20 for project funding subject to project remaining viable and depending on progress of project; allow last mile equity ensuring timely completion of the project depending on progress of project; restructuring of repayment schedule in line with the revised project timelines allowing suitable moratorium period for commissioning and stabilization of operation, as per RBI guidelines; longer repayment tenure up to 80% of the project life in accordance with the dispensation allowed by RBI; structured repayment (ballooning/EMI based etc.) aligned with the cash flow of the project; fund projects with a minimum threshold level of Power Purchase Agreement (PPA) tie-up ensuring project viability; permitting options for merchant sale through power exchange and fund projects that remain viable with such arrangements. 

The information was provided by the Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Mr. Piyush Goyal in a written reply to a question in Rajya Sabha.