Powerful Partnership. PFC and MSEDCL Sign MoA for RDSS Funding
A Memorandum of Agreement (MoA) has been signed by Maharashtra State Electricity Distribution Company Ltd (MSEDCL) and Power Finance Corporation Ltd (PFC) for counterpart funding under the RDSS, a flagship scheme of the Ministry of Power, GoI.
The scheme aims to improve the operational efficiencies and financial sustainability of the DISCOMs. PFC will provide financial assistance by way of a Rupee Term Loan of ₹ 5259.73 crore to MSEDCL, which is 40% of the project cost for distribution infrastructure works at a competitive interest rate. PFC is one of the nodal agencies for RDSS and works under the scheme are envisaged to be funded with 60% budgetary support from the Central Govt. & balance 40% through debt as counterpart funding. The Scheme has a total outlay of ₹ 3.03 lakh crore with an estimated Government Budgetary Support of ₹ 97,631 crore from the Central Government.
Power Partnership Under the Revamped Distribution Sector Scheme (RDSS)
The MoA with MSEDCL is the first loan agreement signed with any state by PFC for counterpart funding under RDSS for which PFC is the nodal agency and also indicates the determination of MSEDCL for implementation of the scheme in a timely manner. The MoA was signed in the presence of senior officials of PFC & MSEDCL and underlines PFC’s commitment towards playing a pivotal role in supporting the efforts of DISCOMs to achieve operational efficiency & sustainability.
