Power Finance Corporation (PFC) is likely to approach banks and financial institutions to tie up funds worth Rs 90,000 crore as part of the National Electricity Fund, which was set up for the development of the power sector.
In 2008, the National Electricity Fund was set up by the Union Government with an estimated investment of Rs 2,25,000 crore. Of the total amount, PFC is expected to raise Rs 90,000 crore.
The proposed fund aims to set up new electricity transmission lines, transformers, replacing overloaded lines and using new technology to reduce transmission and distribution losses to 15 per cent by 2012.
Besides, the Planning Commission suggested that the support of the World Bank and the Asian Development Bank could be sought for improving the electricity transmission and distribution network in the country.
Source : ProjectsToday
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