'Govt's Vision Is To Make Available Affordable Power For All 24x7': Power Minister R K Singh

Union Power Minister R K Singh has advised the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to explore better and cheaper options for raising funds.

Singh reviewed the performance of REC and PFC Limited on 4 and 5 October respectively.

The minister highlighted that the government’s vision is to make affordable power available for all 24x7.

He stressed the need for improving the competitiveness of both institutions with a view to increase their market share.

Singh also advised that both the organisations should be nimble footed and dynamically adapt to the changing market needs, increasing renewables, and make efforts to reduce their cost of funds.

He advised PFC and REC to explore better and cheaper options for raising funds, including from offshore sources, with an overall objective of ensuring that the power sector value chain gets access to cheaper funds, the Ministry of Power said in a statement on Wednesday (6 October).

"For this, he directed PFC and REC to carry out a strategic analysis to adapt to the changed business environment in the Sector with an overall objective to deliver power to consumers at a reasonable cost,"the ministry said.

The minister also highlighted the need for speedy resolution of stressed assets, and suggested a slew of measures to both the organisations in this context, which includes ensuring that the stressed assets are resolved at a fair value with a minimal haircut for PFC and REC and and in line with the national interests.

He emphasised both PFC and REC to increase their outreach by establishing a physical presence across the country.

Apart from this, the minister also directed that the system of oversight on the projects funded by PFC and REC should be tightened, which includes increasing frequency of inspections by the company officials as well as by hiring expert professionals from the market.

He also laid emphasis on strengthening the risk management framework of both the Institutions.

Singh also expressed his concern at the finances of some Distribution Companies (DISCOMs) and suggested remedial measures to PFC and REC, including establishing presence of their lender nominees in the board of directors of DISCOMs of concern.