KPCL seems to be veering towards darkness
Over past 5 years, KPCL has amassed loans of Rs 1,70,000 crores
Loans secured from nationalized banks against machinery
KPCL (Karnataka Power Corporation Limited), the powerhouse responsible for lighting up the entire state, seems to be veering towards darkness. Over the past five years, KPCL has amassed a staggering loan of Rs 1,70,000 crores by mortgaging its machinery with numerous nationalized banks. In the fiscal year 2023-2024 alone, KPCL incurred a loan of Rs 33,345 crores.
Loans secured in nationalized banks against machinery:
Yes, KPCL, the provider of 200 units of free electricity to the citizens of Karnataka, finds itself borrowing billions annually to cover its operational and capital expenses. KPCL’s machinery, held as collateral by PSC, RFC, and nationalized banks, has been instrumental in securing loans worth thousands of crores. A glance at the loan details would undoubtedly raise eyebrows.
KPCL Loan Details:
| Year | Loan Amount in Rs |
| 2018-19 | 21,821 crores |
| 2019-20 | 26,461 crores |
| 2020-21 | 28,097 crores |
| 2021-22 | 29,433 crores |
| 2022-23 | 31,258 crores |
| 2023-24 | 33,345 crores |
The cumulative loan amount of Rs 1,70,415 crores underscores the dire financial state of the energy department. Loans are increasingly sought to sustain the operations of the Energy Department, reaching a critical juncture where interest payments and compounding interests are becoming unmanageable burdens. It’s tragic to witness KPCL tasked with illuminating the state sinking deeper into the trap of debt with each passing year.
KPCL seems to be veering towards darkness
Over past 5 years, KPCL has amassed loans of Rs 1,70,000 crores
Loans secured from nationalized banks against machinery
KPCL (Karnataka Power Corporation Limited), the powerhouse responsible for lighting up the entire state, seems to be veering towards darkness. Over the past five years, KPCL has amassed a staggering loan of Rs 1,70,000 crores by mortgaging its machinery with numerous nationalized banks. In the fiscal year 2023-2024 alone, KPCL incurred a loan of Rs 33,345 crores.
Loans secured in nationalized banks against machinery:
Yes, KPCL, the provider of 200 units of free electricity to the citizens of Karnataka, finds itself borrowing billions annually to cover its operational and capital expenses. KPCL’s machinery, held as collateral by PSC, RFC, and nationalized banks, has been instrumental in securing loans worth thousands of crores. A glance at the loan details would undoubtedly raise eyebrows.
KPCL Loan Details:
| Year | Loan Amount in Rs |
| 2018-19 | 21,821 crores |
| 2019-20 | 26,461 crores |
| 2020-21 | 28,097 crores |
| 2021-22 | 29,433 crores |
| 2022-23 | 31,258 crores |
| 2023-24 | 33,345 crores |
The cumulative loan amount of Rs 1,70,415 crores underscores the dire financial state of the energy department. Loans are increasingly sought to sustain the operations of the Energy Department, reaching a critical juncture where interest payments and compounding interests are becoming unmanageable burdens. It’s tragic to witness KPCL tasked with illuminating the state sinking deeper into the trap of debt with each passing year.
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