HYDERABAD: Disclosing that a request seeking the restructuring of the loans taken for Kaleshwaram Lift Irrigation Scheme has been received from the state government, Union Minister of State for Finance Pankaj Chaudhary on Tuesday told the Rajya Sabha that Rural Electrification Corporation (REC), which had extended the loan, has told Telangana that any rebate on the interest rate may be considered only upon completion or closure of the project.
In a written reply to a question by Congress MP Anil Kumar Yadav, the MoS said that the request sought the restructuring of loans raised by the Special Purpose Vehicles (SPVs) that are serviced from the state consolidated fund under KLIS.
He stated that, as per the information received from the Ministry of Power, the state government has been informed that Kaleshwaram Irrigation Project Corporation Limited (KIPCL), an SPV established to construct KLIS, was financed by Power Finance Corporation Limited (PFC Ltd) and REC Ltd, with total project costs of Rs 37,737.11 crore and Rs 30,536.08 crore, respectively.
“These Non-Banking Financial Companies raise funds from various sources in the domestic and offshore markets. Based on their cost of borrowing, they determine the lending rates, which also depends on the grading of the borrower,” Chaudhary stated.