Mumbai: Rural Electrification Corp (REC) has clarified that the Telangana-based Kaleshwaram Irrigation Project Corporation ( KIPCL) and Telangana State Water Resources Infrastructure Development Corporation ( TSWRIDC) have paid their instalment amount of ₹1,393 crore to the company preventing them from slipping into a non-performing asset (NPA).
The loans though are still classified as SMA 2 (special mention account 2) accounts. The two special purpose vehicles (SPV) were floated by the previous BRS government and together borrowed about ₹27,500 crore for taking up various irrigation projects including Kaleshwaram, Palamuru-Ranga Reddy, Sitarama, Devadula, Sriram Sagar flood flow canal and Kanthanapally irrigation projects.
The two companies' total dues to REC from these SPVs were at ₹1,393.6 crore at the end of March 2025. In a letter to principal secretary Rahul Bojja, last week REC had said that unless payments are made by June end, the accounts could slip into NPA.
In a notice to stock exchanges REC said the payments have been made within the timeline.
"The respective utilities have cleared their critical over-dues and as on June 30, 2025, there are no critical dues of KIPCL and TSWRlDC. Further, both loans are secured and have been extended against State Government Guarantee. It is further to clarify that as on date, there are no loan assets which may tum into fresh NPA on account of outstanding dues," REC said.
The loans though are still classified as SMA 2 (special mention account 2) accounts. The two special purpose vehicles (SPV) were floated by the previous BRS government and together borrowed about ₹27,500 crore for taking up various irrigation projects including Kaleshwaram, Palamuru-Ranga Reddy, Sitarama, Devadula, Sriram Sagar flood flow canal and Kanthanapally irrigation projects.
The two companies' total dues to REC from these SPVs were at ₹1,393.6 crore at the end of March 2025. In a letter to principal secretary Rahul Bojja, last week REC had said that unless payments are made by June end, the accounts could slip into NPA.
In a notice to stock exchanges REC said the payments have been made within the timeline.
"The respective utilities have cleared their critical over-dues and as on June 30, 2025, there are no critical dues of KIPCL and TSWRlDC. Further, both loans are secured and have been extended against State Government Guarantee. It is further to clarify that as on date, there are no loan assets which may tum into fresh NPA on account of outstanding dues," REC said.
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