New Delhi, Sep 20 (IANS): Loans totalling Rs 70,590 crore have been sanctioned so far to power distribution companies (discom) out of the Rs 90,000-crore liquidity package announced by the Centre, Union Power Minister RK Singh told the Rajya Sabha on Sunday.

Of the sanctioned amount, Rs 24,742 crore has been disbursed till September 16, Singh said in his written reply to a question.

"As against Rs 90,000 crore of liquidity infusion package announced by the government, Rs 70,590 crore in loans has been sanctioned, out of which Rs 24,742 crore has already been disbursed/released till September 16," he said.

The package was announced by Union Finance Minister Nirmala Sitharaman in May as part of the 'Atmanirbhar Bharat' economic package, through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to enable the sector to maintain power supplies, since cash flows had plummeted during the lockdown imposed to contain the spread of COVID-19.

Under this intervention, REC and PFC are extending special long-term transition loans up to 10 years to discoms for liquidating their outstanding dues of Central Public Sector Undertaking (CPSU) Generation (Genco) and Transmission Companies (Transcos), Independent Power Producers (IPPs), and Renewable Energy (RE) generators as existing on June 30, 2020.