BHUBANESWAR: The State Government urged the Centre to reduce the interest rate on liquidity proposed to be infused to the power sector affected by the Covid-19 through Rural Electricity Corporation (REC) and Power Finance Corporation (PFC).
The issue was raised by Minister of State for Energy and MSME Dibyasankar Mishra at the Power Minister’s conference held on digital platform by Union Power Minister R K Singh on Friday. Participating in the discussion on the liquidity infusion to discoms to overcome the impact of the pandemic, Mishra urged the Union Minister to reduce the interest rate on liquidity infusion by REC and PFC from 9.5 per cent to 6 per cent and extend the assistance for the revenue shortfall due to less demand of power in 2020-21.
The benefit of the reform-based distribution scheme is applicable for the states having done in PPP mode for better services to the consumers. Mishra emphasised that the proposed scheme should be such that the far-long neglected tribal children get the facility similar to urban children to access education, telemedicine and information. This can be achieved if stable and quality power reach to that difficult places.
He said the consumption/demand from the commercial and industrial consumers continues to be very low and about 25 per cent lower than the expected level. The discoms are not able to schedule the power of Central generating companies like NTPC.
He urged the Union Minister to provide the rebate of the fixed charges component of unscheduled power for full year 2020-21 as the impact will continue. Mishra demanded that while finalising the amendment of Electricity Act, 2003 as proposed by the Power Ministry, the concurrent powers under the federal structure of the governance should be ensured. Mishra’s suggestion for accelerated and simplified environmental clearance of hydro projects was appreciated by Singh who assured to take up the issue with Union Environment Minister Prakash Javedkar.