Scindia meets bankers; discusses lending issues in power sector

Power Minister Jyotiraditya Scindia today met bankers and heads of financial institutions to address the problems faced by them while lending to the power sector.

"Bankers raised problems faced while lending to power sector projects... Fuel availability and environment hurdles are also matters of concern," he told reporters after an hour-long meeting with the bankers.

The meeting was attended by representatives from PSU banks and lending institutions, including Punjab National Bank, Central Bank, Power Finance Corporation (PFC) and Rural Electrification Corporation
(REC).

The Power Ministry, which has hired ICRA for providing rating to the distribution companies, will work towards implementing this system at the earliest.

"The rating system for distribution companies to be implemented from April 1. CARE and ICRA will work on rating distribution companies," he said adding that the lending to the companies be based on ranks given by the agencies.

On the tariff issue, Mr Scindia said regular tariff revision is essential not just to ease lending but also to boost private sector investment.