Loan for borrowers to meet their Medium Term Requirements
- Central/State Govt. Power Utilities and State Governments, except Grade “C” Borrowers.
Extent of Assistance
- All Power Utilities taken together in a State – Rs. 3,000 Cr if all utilities are A+/A, else Rs. 2,000 Cr.
- Max. Rs.500 Cr for each DISCOM if there is more than 1 DISCOM.
- In case of DISCOMs, up to unused limit of 25% of the DISCOM’s previous year’s revenue within the above limit.
- Limit shall be subject to Exposure available as per Prudential Norms.
Tenor of Loan
- 1 year to 3 years.
Interest Rate and Other Charges (Commitment/ upfront/ any other)
- Depending upon Grade of the Borrower and as per prevailing Loan Policy.
Other Loan Conditions
- Security – “Hypothecation of material/assets” or “State Govt. Guarantee” or “Bank Guarantee” or “Corporate Guarantee” or “A mix of these securities”, as acceptable to REC. In addition, suitable escrow cover acceptable to the Corporation.
- Other conditions as per policy and decided by Corporation on case to case basis.