POWER

Government readies a power sector bailout package

As part of its strategy to bring its battered economy back on track, India is working on a power sector bailout package that may involve; temporarily reducing electricity tariffs, providing concessional finance, and clearing around ₹1 trillion in outstanding dues of electricity distribution companies (discoms) by state owned financial institutions, said two government officials aware of the development.

This package is part of the long-awaited stimulus plan to combat the economic disruption from the coronavirus lockdown, that has worsened the already precarious finances of power discoms. The electricity demand load shifted to homes during the lockdown, resulting in lower realizations. With peak electricity demand coming down, commercial and industrial power demand has taken a hit after many factories shut down.

Prime Minister Narendra Modi will address the nation Tuesday evening at 8 pm as the 54-day national lockdown nears its end on 17 May.

Source
Livemint
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