Ludhiana, June 2: Punjab State Power Corporation Limited (PSPCL) is facing serious financial crunch due to the non-payment of subsidies by the state government. It has sought a loan of Rs 1000 crore from 26 banks as the Punjab government failed to keep its promise of paying subsidy.
According to the order released, banks have been asked to send their quotations by June 15 and the loan will be repaid in 28 instalments over 10 years.
"There is outstanding tariff compensation of Rs 9020 crore receivable from Government of Punjab...against the free/subsidized supply of power to agriculture/industrial/ domestic weaker section consumers," the order reads.
"To meet with this cash gap, PSPCL intends to avail working capital term loan of Rs 1000 crore against the available limit under UDAY scheme," it added.
Earlier in April, PSPCL sought an additional loan of Rs 500 crore to purchase power during the paddy season.