Medium Term

Loan for borrowers to meet their Medium Term Requirements

Eligible Entities 

• Central/State Govt. Power Utilities and State Governments, except Grade “C” Borrowers.

Extent of Assistance 

• All Power Utilities taken together in a State – Rs. 3,000 Cr if all utilities are A+/A, else Rs. 2,000 Cr.
• Max. Rs.500 Cr for each DISCOM if there is more than 1 DISCOM.
• In case of DISCOMs, up to unused limit of 25% of the DISCOM’s previous year’s revenue within the above limit.
• Limit shall be subject to Exposure available as per Prudential Norms.

Tenor of Loan 

• 1 year to 3 years.

Interest Rate and Other Charges (Commitment/ upfront/ any other)  

• Depending upon Grade of the Borrower and as per prevailing Loan Policy.

Other Loan Conditions

• Security – “Hypothecation of material/assets” or “State Govt. Guarantee” or “Bank Guarantee” or “Corporate Guarantee” or “A mix of these securities”, as acceptable to REC. In addition, suitable escrow cover acceptable to the Corporation.
• Other conditions as per policy and decided by Corporation on case to case basis.