HYDERABAD: Power Finance Corporation (PFC) will provide a loan of Rs 30,000 crore for the ongoing Kaleshwaram and Palamuru-Rangareddy Lift Irrigation projects. This was informed by PFC chairman and managing director Rajeev Sharma to a delegation of senior officials of Telangana led by Chief Secretary SK Joshi.
Though the PFC would sanction loans to power plants only, it came forward to fund the irrigation projects as they require hydro-electric works, large capacity electric motors and pumps and other equipment.
As per the directions of Chief Minister K Chandrasekhar Rao, Chief Secretary SK Joshi, TS Genco and Transco chairman and managing director D Prabhakar Rao, finance department principal secretary K Ramakrishna Rao and irrigation engineer-in-chief B Hariram sealed the loan with PFC chairman Rajeev Sharma on Friday.
“The PFC has in-principle agreed to give Rs18,000 crore for Palamuru-Rangareddy and Rs12,000 crore for Kaleshwaram. The modalities and other details will be worked out in due course of time. As the two lift irrigation projects involve use of electric works, the PFC has decided to give the loan,” Hariram told Express over phone.
The PFC, after considering the State’s growth rate, financial prudence and the State’s repayment capacity, has decided to advance Rs 30,000 crore, official sources said.
The PFC has also provided loans in the past to the State govt’s projects including power plants and electro-mechanical works under Mission Bhagiratha. PFC provided Rs 23,000 crore loan for power plants and Rs 17,000 crore for drinking water schemes. Now, it has decided to advance Rs 30,000 crore for irrigation projects. After KCR assumed charge as CM for the second term, PFC officials called on Rao and offered loan for govt projects.
The voluntary offer from PFC was due to the State’s repayment capacity and financial discipline. According to sources, the PFC offered loans at less rate of interests. As PFC officials themselves requested the CM to take loans, Rao directed the top officials to meet PFC chairman for raising loans for irrigation projects.