POWERGRID Wins Contracts to Evacuate 18 GW of Renewable Energy

MNRE Seeks Feedback on Guidelines for PM-Surya Ghar Rooftop Solar Program

Apple Partners with CleanMax to Power India Operations with Renewable Energy

Explainer: Application Process for ALMM Inclusion and Renewal

EU Member States Sign Solar Charter to Boost Domestic Manufacturing

Daily News Wrap-Up: NTPC’s 1 GW Wind-Solar Hybrid Auction

Sprng Energy, AMPIN, Juniper, ReNew, Avaada Win NTPC’s 1 GW Hybrid Auction

Biofuels Firm GPS Renewables Raises $50 Million in Debt Financing

Solar Auctions Surge by 229% in Q1 2024, Tender Activity Up 122%

Global Wind Installations Reached 1 TW Milestone in 2023

<p>The Andhra Pradesh Power Finance Corporation Limited (APPFCL) has stated that the state-run power companies have been raising funds from financial institutions and other lending organizations at high interest rates resulting in high payouts by these companies as interest.</p>
<p>The state-run power companies include Transmission Corporation of Andhra Pradesh (<a href="https://www.aptransco.co.in/transco/" target="_blank" rel="noopener noreferrer">APTRANSCO</a>), Andhra Pradesh Power Generation Corporation (<a href="https://apgenco.gov.in/home.do" target="_blank" rel="noopener noreferrer">APGENCO</a>), Andhra Pradesh Southern Power Distribution Company Limited (<a href="https://www.apspdcl.in/" target="_blank" rel="noopener noreferrer">APSPDCL</a>), Andhra Pradesh Eastern Power Distribution Company Limited (<a href="https://www.apeasternpower.com/" target="_blank" rel="noopener noreferrer">APEPDCL</a>), and Andhra Pradesh Power Development Company Limited (APPDCL).</p>
<p>This has put an undue burden on APPFCL, which is a state-owned financial corporation and is also registered as a non-banking finance company (NBFC) with the Reserve Bank of India to raise resources for lending to power utilities of the state government.</p>
<p>APPFCL said it is trying its best to provide all the necessary financial support to the state utilities and provide a seamless financial framework to these state-run power sector companies. In its order, APPFCL noted that the state’s power companies have identified certain freehold properties and are willing to transfer the assets to APPFCL at the book value and in the process, strengthen its assets.</p>
<p>The state government has given its permission to transfer the properties identified by the power utilities in favor of the APPFCL, Vijayawada, and help it raise resources for lending to power companies run by the state government.</p>
<p>DISCOMs across states have been reeling under financial stress, which has been exacerbated in recent months. In September 2019, a <a href="http://cea.nic.in/" target="_blank" rel="noopener noreferrer">Central Electricity Authority</a> report stated that the total payment due for 513 renewable projects amounted to ₹97.356 billion (~$1.356 billion) as of July 31, 2019, showing an increase of nearly ~ ₹15 billion (~$0.21 billion) compared to the previous figure of ₹82.3 billion (~$1.14 billion) for the same period.</p>
<p>In August 2019, <a href="https://mercomindia.com/payment-dues-state-discoms-solar-wind-hydro/" target="_blank" rel="noopener noreferrer">Mercom</a> had reported that the payment dues were spread across the states of Andhra Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Odisha, Tamil Nadu, Rajasthan, Telangana, and Uttar Pradesh.</p>
<p>Addressing the large outstanding dues on power bills, the central government has now mandated opening and maintaining of adequate <a href="https://mercomindia.com/discoms-lc-payment-security-mechanism/" target="_blank" rel="noopener noreferrer">letters of credit</a> (LC) as a payment security mechanism.</p>
<p>Meanwhile, in a recent development, the government of Andhra Pradesh has <a href="https://mercomindia.com/andhra-pradesh-solar-wind-hybrid-policy/" target="_blank" rel="noopener noreferrer">issued</a> a notification amending the state’s policy for wind, solar, and wind-solar hybrid projects, taking away some vital incentives from the renewable generators. The amendments have changed or canceled many existing provisions in these policies that deal with transmission charges, energy banking, and tariff determination.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
</div>
<div class="authorboxn">
<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
</div>
</div></div><div class="clearfix"></div></div></div>

Andhra Power Finance Corporation Set to Raise Resources for Lending to Power Companies

appfc

Get the most relevant India solar and clean energy news.

RECENT POSTS