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Union Cabinet likely to approve package for power discoms

Monday, 20 Apr 2020

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The Union Cabinet is likely to approve a package for discoms reeling under revenue loss due to lower power demand amid the Coronavirus lockdown.

The package will also include setting up an alternative investment fund to pay off their dues towards electricity generation companies. The package may include creating an alternate investment fund to pay off dues on behalf of the discoms to gencos.

The discoms may be charged nominal interest rate and administrative expenses on that. The package may also include steps like directions to the state and central power regulators to reduce electricity tariff.

The payment of dues would help distribution companies (discoms) to increase their electricity load (supplies) and ensure 24x7 uninterrupted power supply.