Government's vision is to make available affordable power for all 24x7: Union Minister

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Union Power Minister RK Singh (file photo)
Union Power Minister RK Singh (file photo)

New Delhi [India], October 6 (ANI): Union Power Ministry reviewed the performance of Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) Limited on October 4 and 5, respectively, said a press release from the power ministry.

Union Minister of Power and New and Renewable Energy RK Singh, Minister of State for Power Krishan Pal and senior officials were present during the review meeting.

The Minister highlighted Government's vision is to make available affordable power for all 24x7. In this context, he stressed the need for improving the competitiveness of both institutions with a view to increase their market share. He also 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.

He advised PFC and REC to explore better and cheaper options for raising funds, including from offshore sources, with an overall objective of ensuring that the power sector value chain gets access to cheaper funds. For this, he directed PFC and REC to carry out a strategic analysis to adapt to the changed business environment in the Sector with an overall objective to deliver power to consumers at a reasonable cost.

The Minister also stressed the need for the speedy resolution of Stressed Assets, and suggested a slew of measures to both the organizations in this context, which includes ensuring that the stressed assets are resolved at a fair value with a minimal haircut for PFC & REC and in line with the national interests. He emphasized both PFC and REC to increase their outreach by establishing a physical presence across the country. Apart from this, Singh also directed that the system of oversight on the projects funded by PFC and REC should be tightened, which includes increasing the frequency of inspections by the company officials as well as by hiring expert professionals from the market. He also laid emphasis on strengthening the risk management framework of both institutions.

Further, Singh also expressed his concern at the finances of some Distribution Companies and suggested remedial measures to PFC and REC, including establishing presence of their lender nominees in the Board of Directors of DISCOMs of concern. (ANI)

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