Long Term Loan - T and D

We provide funding for creation of infrastructure and system improvement of transmission, sub-transmission and distribution systems and also renovation and modernization of the system to improve its quality, operational efficiency, reliability and stability.

Eligible Entities

All State sector utilities (Discoms/ Transcos/ Integrated SEBs/Power Departments), Central sector utilities, CPSUs, and JVs/SPVs of State sector utilities/CPSUs, etc.

Loan products

a.    System Improvement for Transmission/Distribution system
b.    Bulk Procurement and installation of equipments/materials
c.    Intensive electrification works including agriculture
d.    Counterpart funding Projects approved under central govt. schemes e.g. Saubhagya,DDUGJY, R-APDRP and IPDS etc.
e.    Refinancing of Transmission projects.
f.    Special loans as against working capital etc.
g.    Schemes related to AT&C loss reduction, innovation and best practices in transmission and distribution sector.
h.    Study and implementation of Energy Audit.
i.    Implementation of IT enabled system- ERP, SCADA, GIS mapping, Smart Grid, AMI and AMR etc.
j.    Regulatory assets
k.    Research laboratories, testing facilities, mobile testing facilities, Training Centers, Customer Care Centers. 
l.    Office/Residential buildings, buildings for training centres etc.

Apart from above, Funding of projects under Tariff Based Competitive Bidding (TBCB).

 
Tenure of  loan and Interest rates

Loan repayment for transmission projects shall be 10/12/15 years in addition to moratorium of 3 years based on the requirement of borrower. 

Loan repayment for distribution projects shall be 10/12 years in addition to moratorium of 3 years based on the requirement of borrower.

The Rate of interest applicable for the projects is based on the grading of the Borrower and Loan policy circulars issued by REC from time to time.