Expressing concern over the state of power discoms, Finance Minister Nirmala Sitharaman on May 13 announced an emergency liquidity injection of Rs 90,000 crore for the ailing sector.
While laying out the blueprint of the economic package announced by PM Modi, Sitharaman said: "The discoms are facing unprecedented cash flow problems. They desperately need help, otherwise they will be unable to the power generating companies. The Power Finance Corporation and the Rural Electrification Corporation will together infuse Rs 90,000 crore to all the DISCOMS against all the receivables that they have."
Track this blog for highlights from the FM’s press meet
Not only will the move enable them to pay generation companies, it will eventually pass on the benefits to customers, the FM said.
According to the finance ministry, discom payables to power generation and transmission companies is currently Rs 94,000 crore. Hence, loans will be given against state guarantees for the exclusive purpose of discharging liabilities of Discoms to Gencos.
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