POWER

Government proposes grant of Rs 1.1 lakh crore for state discoms

The government plans a grant of over Rs 1.1 lakh crore to state power distribution companies under a new bailout scheme that would mandate discoms with high losses to either privatise operations or appoint distribution franchisees and invest in infrastructure upgradation, a senior official said.

The government expects to spur about Rs 3 lakh crore of investments in the distribution sector through the latest discom restructuring scheme that it claims to be different from the three previous initiatives.

“The scheme is reform and resultoriented where the distribution companies will invest first and get money later only when they perform,” a senior government official said.

The scheme, previously proposed to be named as Atal Distribution System Improvement Yojana, or Aditya, is likely to come up in the upcoming budget since the previous Ujwal Discom Assurance Yojna is expiring in March, the official said.

Source
ET Energy World
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