R K Singh directs states to clear dues of power generating companies

The minister said that attracting investments is one of the major challenges that is being faced by the sector.

Published: 11th October 2019 02:22 PM  |   Last Updated: 11th October 2019 02:22 PM   |  A+A-

Power minister R K Singh. (Photo | PTI)


NARMADA Gujarat): Power minister R K Singh on Friday directed the state governments to clear dues of power generation companies, a step which he said will boost investor sentiment and attract investments.

The minister said that attracting investments is one of the major challenges that is being faced by the sector.

"Today the outstanding bills for generation companies is Rs 59,000 crore. Looking at this who will come and invest in the sector?," he said while speaking at the two-day conference of power and new, renewable energy ministers of states and union territories here.

He said state departments owe about Rs 49,000 crore to electricity distribution companies (discoms), so if this amount is recovered then a large portion of dues will be cleared which will ultimately lessen the burden on the power producers.

The minister noted that investments are crucial for building capacities. He said if there will be ease of doing business and sanctity of contracts and certainty of payments, then players will set up units of generation be it thermal or renewable, and directed the ministers to take steps to get the dues cleared.

"The power price is another issue. You buy it at Rs 3-4 a unit and sell it at a price of 7-8 a unit and still, there are dues. Who will buy power at such a high cost for their clusters. Steps must be taken to provide new setups electricity at cheaper rates. Cheap electricity will also help in attracting investments," he added.

Elaborating further, he said it was a remarkable achievement in giving connections to 2 crores 66 lakh households in last 16 months but there is no point in achieving such a feat if some fans and bulbs are not functional.

It means time and money has been wasted. Supplying 24x7 electricity is also a challenge and states must take steps to address this issue. It is right of the consumer as he is paying for the electricity, he said.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp