A statement by the union ministry of power said, the dues have come down with the implementation of Electricity (LPS and Related Matters) Rules, 2022
').insertAfter(".article-content__img");$(".article-content__img div").find('div').remove();
Discoms' Dues To Gencos Down By Rs 24,000 Crore On Back Of Loan Scheme
Thanks to a special loan scheme by state-owned lenders Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), the dues of power distribution companies (discoms) towards power generators has reduced by Rs 24,000 crore. However, cumulative dues remain at a high of Rs 1.13 trillion.
A statement by the Union ministry of power said the dues have come down with the implementation of the Electricity (LPS and Related Matters) Rules, 2022.
The ministry said that the total outstanding dues of states, which were at Rs 1.37 trillion as on June 3, have been reduced by Rs 24,680 crore to Rs 1.13 trillion with timely payment of just four EMIs.
“For payment of EMI of Rs 24,680 crore, five states have taken a loan of Rs 16,812 crore from PFC & REC. Eight states have made their own arrangement,” said the statement.
It added that during the past five months, states have paid almost Rs 1.68 trillion of their current dues.
“Based on the results achieved so far, it is expected that strict implementation of the LPS Rules will bring back financial viability of the power sector. It would attract investment to ensure 24x7 electricity to consumers. The Rule may have played a vital role in ensuring financial discipline in discoms,” the power ministry said.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
First Published: Wed, November 30 2022. 21:38 IST
RECENT NEWS
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more
Transforming Financial Operations With Robotic Process Automation
Author: Ricardo Goulart ... Read more
The Role Of Machine Learning In Fraud Detection
Author: Gerardine Lucero  ... Read more
Principles Of Islamic Banking And Finance
When it comes to banking, a significant new contender has entered the ring. The principles of Islamic banking and financ... Read more