Power Finance Corporation Ltd (PFC) has signed a Memorandum of Agreement (MoA) with Maharashtra State Electricity Distribution Company Ltd (MSEDCL), one of India’s largest power distribution companies, for counterpart funding under the Ministry of Power’s flagship Revamped Distribution Sector Scheme (RDSS). This initiative aims to enhance the operational efficiency and financial sustainability of distribution companies (DISCOMs).
Under the agreement, PFC will extend financial assistance through a Rupee Term Loan of ₹5,259.73 crore, covering 40% of the project cost for distribution infrastructure improvements. The loan will be provided at a competitive interest rate.
As one of the nodal agencies for RDSS, PFC plays a crucial role in facilitating funding for the scheme, which is structured with 60% budgetary support from the Central Government and 40% counterpart funding through debt. The RDSS has a total financial outlay of ₹3.03 lakh crore, including ₹97,631 crore of Government Budgetary Support. This MoA marks the first loan agreement signed by PFC with any state for counterpart funding under RDSS, showcasing MSEDCL’s commitment to the timely execution of the scheme.
The signing ceremony was attended by Smt. Parminder Chopra, CMD of PFC, Shri Manoj Sharma, Director (Commercial) of PFC, Shri Anudeep Dighe, Director (Finance) of MSEDCL, and senior officials from both organizations. This partnership reflects PFC’s dedication to supporting DISCOMs in achieving greater efficiency and long-term sustainability.