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Mahesh

30/05/22 07:12 AM IST

Power Ministry Scheme to liquidate DISCOM Dues

In News 
  • The union ministry of power has notified a scheme for the power distribution companies (discoms) to defer their dues towards the power generating companies (gencos).
  • With the dues of the discoms touching a record high of Rs 1 trillion, the ministry has proposed a scheme to liquidate the discoms’ dues.
The Proposed Scheme 
  • The proposed scheme aims to provide relief to the power sector ecosystem which is reeling under the pressure of non-payment of dues.
  • It will provide liquidity to the power generating companies and the discoms can pay their dues in easy installments (up to 48 installments).
  • One-time relaxation will be given to the power distribution companies by freezing their outstanding dues and the late payment surcharge (LPSC) will also be waived off.
  • This will save Rs 19,833 crore on late payment surcharge over the next 12 to 48 months. States like Tamil Nadu and Maharashtra which have large outstanding dues will be benefitted the most from this scheme.
Source- Business Standard 

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