Transformers and Rectifiers to get Rs 68 cr relief from PGCIL

PGCIL has issued guidelines for reduction of Performance Security from existing 10 per cent to three per cent under the existing contracts as well upcoming Contracts to be commenced by December 31, 2021, in line with the government of India guidelines under the Atmanirbhar Bharat Package-3 declared on 12th November 2020, according to a BSE filing.The company will get relief of approximate Rs 68 crore from the state-owned Power Grid Corporation PGCIL, it added.

Transformers and Rectifiers on Wednesday said it will get about Rs 68 crore relief on account of relaxed performance security norms from Power Grid Corporation under the Atmanirbhar Bharat Package-3. ''PGCIL has issued guidelines for reduction of Performance Security from existing 10 per cent to three per cent under the existing contracts as well upcoming Contracts to be commenced by December 31, 2021, in line with the government of India guidelines under the Atmanirbhar Bharat Package-3 declared on 12th November 2020,'' according to a BSE filing.

The company will get relief of approximate Rs 68 crore from the state-owned Power Grid Corporation (PGCIL), it added. This will reduce the Bank Guarantee outstanding with the banks and further reduction in the contingent liability also.

The firm has become a leading manufacturer of transformers in the country, it added..