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REC Limited

Financial Products

Revolving Bill Payment Facility (RBPF)

Objective:

To extend loans to Discoms as Revolving Bill Payment Facility (RBPF) towards payment of power purchase dues and transmission charges of CPSU Gencos & Transcos, Private Transcos, IPPs and RE Generators.

Eligible Entities:

State-Owned Distribution Companies/ Combined Generation & Distribution Companies, Holding Companies/Companies having administrative control of Discoms/ Companies buying power on behalf of Discoms and Private Discoms shall be eligible under this scheme.

Extent of Financial Assistance:

DISCOMS shall submit its request of loan for clearance of power purchase cost and transmission charges during the ensuing year. The loan during the ensuing year shall be extended for clearance of power purchase cost and transmission charges of previous year. The loan shall be restricted to the limits available under UDAY /other GoI schemes (or as relaxed by GoI).

Interest Rate:

The rate of interest shall be as applicable for the respective borrower as per the latest REC grading of the utility and REC loan policy circular.

Loan Period:

The Sanctioned Limit shall be valid for 5 Years but shall be reviewed on yearly basis. During the period, disbursement can be availed on a revolving basis, such that the outstanding principal amount shall not exceed the sanctioned limit. The tenor of the loan will be either one of the following:

            a. Maximum of 6 months which shall be repayable in Equated monthly Instalments (EMI) with no moratorium

            b. 12 months which shall be repayable in 6 EMIs after a moratorium of 6 months on principal repayment

Security Structure:

            a. State Govt. Guarantee
                 Or
                 First Pari passu charge on assets with at least 110% coverage

            b. Default Escrow Account to the satisfaction of REC

Page Last Updated At: 02/06/2023 - 09:02 PM
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