The State government has given administrative sanction for the release of `4,690 crore to power discoms to clear the dues to be paid to various financial agencies and banks.
According to the order issued on Friday by Energy secretary N Srikant, the decision was to improve the overall fiscal status.
A 10-year Indian government paper would have a yield of 3.5 per cent to 3.7 per cent.
PFC has financed 70 per cent of the deal through cash inflows from the business and the balance 30 per cent is via debt instruments.
After KCR assumed charge as CM for the second term, PFC officials called on Rao and offered loan for govt projects.
The Irrigation department issued two separate GOs to this effect.