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Power Finance Corporation Limited (PFC), in line with its developmental role in the power sector, has decided to significantly increase the period for loan repayment for hydro projects funded by it to 20 years. The Corporation is currently providing loans with 15 years repayment period after the moratorium of 5 to 6 years in case of large hydro projects. The increased tenure of repayment period of 20 years will increase the loan tenure effectively to 24-26 years, which cold reduce the tariff for hydro projects financed by the Corporation by about 20-25 paise per kWh.
The Company has also decided to increase the repayment period for transmission projects from the existing 12 years to 15 years after the usual moratorium period.
The above pro-active steps will definitely help the power sector which, based on the reform initiatives of the Government, is poised for financial turnaround and rapid growth.
NVN/MK.
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