Bengal has taken a Rs 1,022-crore transition loan from the Centre to help its power distribution company tide iteself over liquidity stress amid the Covid-19 pandemic.
The loan is part of the central government’s Rs 90,000-crore Atmanirbhar Bharat Abhiyan package to assist stressed distribution companies.
The West Bengal State Electricity Distribution Co Ltd (WBSEDCL) has been facing financial woes with minuscule collections in April and May, resulting in an over Rs 2,000- crore shortfall, officials said.
With a consumer base of about two crore, WBSEDCL caters to the entire state, except Calcutta and a part of its adjoining districts.
“We have taken a Rs 1,022-crore loan to clear dues of various Central and state entities,” Bengal power minister Sobhondeb Chattopadhyay said.
The Centre had on May 13 decided to make an infusion of Rs 90,000-crore through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) as part of the Atmanirbhar Bharat Abhiyan. Under this intervention, REC and PFC would extend special long-term transition loans up to 10 years.
