Amended RBPF Policy

REC Policy for Offering Revolving Bill Payment Facility (RBPF) to DISCOMs/GEDCOs for
ensuring early payment of dues to GENCOs/ TRANSCOs/Trading Companies
1. Objective:
To extend loans to DISCOMs/ GEDCOs as Revolving Bill Payment Facility towards payment of power
purchase dues and transmission charges of GENCOs, TRANSCOs and Electricity Trading Licensees
(Suppliers).
2. Eligible Entities:
a. State-Owned Distribution Companies/ Combined Generation & Distribution Companies,
Holding Companies/Companies having administrative control of DISCOMs/ Companies buying
power on behalf of DISCOMs and Private DISCOMs shall be eligible under this scheme.
b. Borrower should not have any overdues in the books of REC.
c. Exposure: The borrower should have balance exposure available as per standard norms of REC.
3. Extent of Financial Assistance:

DISCOMs shall submit its request of loan for clearance of power purchase cost and transmission charges
during the ensuing year. The loan shall be restricted to power purchase cost and transmission charges
of previous year.
4. Disbursement Mechanism:
a. The borrower shall submit the disbursement request along with details of dues as per the
bills/invoices raised by GENCOs, TRANSCOs and Electricity Trading Licensees (Suppliers).
b. The Borrower shall submit a list of suppliers to whom payment has to be made under the facility
along with their Bank account Details.
c. The DISCOM shall submit a request for release of payment at least 3 Working days before the
date for availing the rebate. The last date of payment for availing the rebate shall be clearly
mentioned in the request.
d. Borrower should not have any overdues in the books of REC.
e. REC shall release the amount within 03 working days of submission of request by DISCOMs for
payment to suppliers.
f. The payment shall be released directly to GENCOs, TRANSCOs and Electricity Trading Licensees
(Suppliers) based on authorisation of DISCOMs/GEDCOs in this regard.
5. Security Structure:
a. The borrower may provide any of the following securities:
State Govt. Guarantee
Or
First Pari passu charge on assets with at least 110% coverage
b. Default Escrow Account to the satisfaction of REC.
6. Loan Period:
The Sanctioned Limit shall be valid for 5 Years but shall be reviewed on yearly basis. During the period,
disbursement can be availed on a revolving basis, such that the outstanding principal amount shall not
exceed the sanctioned limit. The tenor of the loan will be either one of the following:
REC Policy for Offering Revolving Bill Payment Facility (RBPF) to DISCOMs/GEDCOs
Page 1 of 2
a. Maximum of 6 months which shall be repayable in Equated monthly Instalments (EMI) with no
moratorium
b. 12 months which shall be repayable in 6 EMIs after a moratorium of 6 months on principal
repayment
Further, borrower may also make bullet repayment at the end of the tenor instead of EMIs. The
same has to be opted at the time of documentation.
All disbursement made during each calendar month shall be bunched together and shall have a single
repayment schedule.
The facility can be prepaid as mentioned in section 7 below. After repayment/ prepayment, the
facility can be re-availed in such a manner that the outstanding amount under the facility is within
the sanctioned limit. Further, for the fifth year the repayment date shall not be later than the terminal
date of the facility, i.e., 5 years from the date of documentation.
7. Prepayment of Loan:
Borrower may be allowed prepayment of these loans once in a month without any prepayment
premium. However, borrower has to give 3 Working days’ prior notice in this regard. The
prepayment amount should be more than Rs. 10 Cr. Any amount pre-paid shall be adjusted by REC
as per its appropriation methodology.
For any other prepayment, prepayment premium @0.5% shall be applicable.
8. Interest Rate:
Interest shall be payable monthly and the Interest rate for the scheme shall be as notified from time
to time.
9. Assistance to Private Sector Utilities:

The above conditions are for State sector utilities. The scheme shall also be applicable for Private Sector
Distribution Companies. The terms and conditions including security package and applicable interest
rate shall be separately decided by REC. Due diligence and Entity appraisal shall be carried out by REC
as per extant policy/practices/procedures.
10. Other Procedures / Terms:

Other procedures e.g. documentation etc. and Terms of sanction shall be as per generally applicable
policies and Standard Terms applicable in respect of State Sector borrowers for Short Term Loan.
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REC Policy for Offering Revolving Bill Payment Facility (RBPF) to DISCOMs/GEDCOs
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REC Policy for Offering Revolving Bill Payment Facility (RBPF) to DISCOMs/GEDCOs for

ensuring early payment of dues to GENCOs/ TRANSCOs/Trading Companies

3. Extent of Financial Assistance:

b. Default Escrow Account to the satisfaction of REC.

For any other prepayment, prepayment premium @0.5% shall be applicable.

9. Assistance to Private Sector Utilities:

10. Other Procedures / Terms:

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