REC to provide INR 39,121cr financial assistance to Karnataka Utilities

State-run Rural Electrification Corp (REC) said that it has inked an initial pact with BESCO and KPCL for extending the financial assistance of INR 39,121 crore to the power utilities utill March 2022.

REC has signed the MoUs with Bangalore Electricity Supply Company (BESCO) and Karnataka Power Corp (KPCL) in the presence of Karnataka’s Chief Minister, Siddaramaiah and State Energy Minister D K Shivakumar, said REC in a statement.

KPCL can avail a debt of INR 27,121 crore for generation projects and other loan requirements, under the pact, it said.

While on other hand, BESCO is permitted to avail a debt of INR 12,000 crore for implementation of distribution projects in the state for augmentation, strengthening, sub-transmission system, upgradations of distribution infrastructure, new distribution, underground cabling works and R&M works.

Other than that, the investment has made for works under IPDS and DDUJGY, implementation of smart meters, smart grid, the creation of distribution infrastructure for releasing agricultural services, procurement of various materials, and working operational /capital funding requirements, works for smart cities and special loan requirements, etc.

Also beside the financial assistance, the power utilities have agreed to avail management and consultancy services from subsidiaries of REC for their various activities/projects for the upcoming five years.