CCEA approved setting-up of National Electricity Fund

CCEA approved setting-up of National Electricity Fund
Jyotiraditya Scindia, Minister of State (Independent Charge) for Power, informed Lok Sabha that Cabinet Committee on Economic Affairs (CCEA) has approved the setting-up of National Electricity Fund (NEF), an interest subsidy scheme. The fund will provide interest subsidy aggregating to Rs. 8,466 crore on loan disbursement amounting to Rs. 25,000 crore to the state power utilities both in public and private sectors, and improve the distribution network.
For financial assistance from NEF, states have been categorised as “special category and focused states” and “states other than special category and focused states”. The objective of the NEF scheme is to expedite investment in distribution sector to improve infrastructure and to incentivise the reform process in the sector. Projects under the scheme are yet to be sanctioned.
Govt. of Madhya Pradesh has requested the ministry to consider the interest subsidy on the disbursements of loans by Rural Electrification Corporation Limited (REC) during 2012-13 and 2013-14 for feeder distribution scheme of Madhya Pradesh.
NEF guidelines stipulate that projects sanctioned by lenders will be considered by steering committee during FY 2012-13 and FY 2013-14, provided no disbursement has been made by the lender under these projects prior to the submission. Feeder distribution schemes of Madhya Pradesh were sanctioned in FY 2010-11 and disbursements of the fund for schemes have also started. Accordingly, these schemes of Madhya Pradesh are not eligible under NEF.

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CCEA approved setting-up of National Electricity Fund

CCEA approved setting-up of National Electricity Fund
Jyotiraditya Scindia, Minister of State (Independent Charge) for Power, informed Lok Sabha that Cabinet Committee on Economic Affairs (CCEA) has approved the setting-up of National Electricity Fund (NEF), an interest subsidy scheme. The fund will provide interest subsidy aggregating to Rs. 8,466 crore on loan disbursement amounting to Rs. 25,000 crore to the state power utilities both in public and private sectors, and improve the distribution network.
For financial assistance from NEF, states have been categorised as “special category and focused states” and “states other than special category and focused states”. The objective of the NEF scheme is to expedite investment in distribution sector to improve infrastructure and to incentivise the reform process in the sector. Projects under the scheme are yet to be sanctioned.
Govt. of Madhya Pradesh has requested the ministry to consider the interest subsidy on the disbursements of loans by Rural Electrification Corporation Limited (REC) during 2012-13 and 2013-14 for feeder distribution scheme of Madhya Pradesh.
NEF guidelines stipulate that projects sanctioned by lenders will be considered by steering committee during FY 2012-13 and FY 2013-14, provided no disbursement has been made by the lender under these projects prior to the submission. Feeder distribution schemes of Madhya Pradesh were sanctioned in FY 2010-11 and disbursements of the fund for schemes have also started. Accordingly, these schemes of Madhya Pradesh are not eligible under NEF.

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