Inside Pages9Final.indd - Ministry of Power

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MINISTRY OF POWER
the power projects and the agreement has been signed
on June 6, 2001. Presently, power utilities of Himachal
Pradesh and Uttaranchal are utilizing this line of credit. For
these states, 3 projects amounting to US dollar 11 million
have been identified. US dollar 2.01 million has been
utilized till date.
4.3 KfW-GERMAN FINANCIAL COOPERATION
PFC has negotiated a Line of Credit (LOC) of 100.56
million with KfW under “German Financial Cooperation with
India- Renewable Energy Program PFC II” for undertaking
Rehabilitation and Modernization of 9 old Hydro power
plants of Uttaranchal Jal Vidyut Nigam Ltd. The total loan
under this LoC facility consists of a soft portion of 35.56
Million and a commercial portion of 65 Million amounting
a total of 100.56 Million. The facility also envisages a
grant of 3.33 Million for undertaking feasibility studies
and organizing training programs.
Almati Dam Power House in Karnataka financed by PFC
5.0 INSTITUTIONAL DEVELOPMENT OF POWER
UTILITIES
PFC has been adopting a proactive and pragmatic
approach to encourage improvement in the financial and
operational efficiency of the state power sector. Keeping
this in view, Reform Operational and Financial Action
Plans consisting of a series of time bound action plan for
different functional areas of the utilities are formulated.
Besides aiming at bringing about efficiency improvements
in the state power sector, R-OFAP focuses on reform/
restructuring activities needed to create an institutional
framework for the self-sustainability of the sector in the
long run.
These Action Plans are formulated with active participation
of the concerned utility and approved by the respective
Board of the Utilities. The implementation of various
activities included in OFAP is monitored regularly and
progress report on the same is sought from the utilities. As