STOCK MARKET BSE NSE

Government announces relief measures for power sector to ensure uninterrupted supply of electricity

For ensuring uninterrupted power supply, the power ministry has also announced that payment security will be reduced by 50 per cent.

Published: 28th March 2020 01:17 PM  |   Last Updated: 28th March 2020 01:17 PM   |  A+A-

For representational purpose. (Photo | Pixabay)

By PTI

NEW DELHI: The government on Saturday announced a slew of relief measures, including three-month moratorium for distribution companies (Discoms) to pay to gencos , to ensure 24X7 electricity supply during the lockdown period.

From last August, the goverment had made it mandatory for discoms to issue Letter of Credit to get power supply from gencos.

FOLLOW CORONAVIRUS LIVE UPDATES HERE

Besides discoms were given option to get power supply on single day advanced payment. This was done in view of the mounting outstanding dues of discoms towards gencos.

For ensuring uninterrupted power supply, the power ministry has also announced that payment security will be reduced by 50 per cent.

According to a statement by the power ministry, directions are issued to power regulator CERC to provide three-month moratorium to discoms to make payment to gencos (generating companies) and transmission utilities.

Also, there will be no penalty on late payment. Besides, states are requested to issue similar directions to SERCs ( State Electricity Regulatory Commissions) .

Despite the lockdown imposed to contain the spread of COVID-19, the whole workforce of the power sector - generation, transmission, distribution and system operations - is working round the clock, Power Minister R K Singh said in the statement.

In order to maintain the continuity of supply of coal by domestic coal companies and transportation by railways, the ministry is in touch with the ministries concerned.

Due to the lockdown, consumers are unable to pay their dues to distribution companies (discoms).

This has affected the liquidity position of discoms thereby impairing their ability to pay to the generating and transmission companies.

In this context,  Singh has approved significant relief measures for the power sector.

The decisions have been taken to ease the liquidity problems of discoms.

CPSU Generation / Transmission Companies will continue supply/ transmission of electricity even to discoms which have large outstanding dues to the generation / transmission companies.

Till June 30, the payment security mechanism to be maintained by discoms with gencos for dispatch of power shall be reduced by 50 per cent.



Comments

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.

edexworks
flipboard facebook twitter whatsapp