POWER

Govt approves Rs 3.03 lakh cr reform-based scheme for power discoms

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a reform-based result-linked power distribution scheme of Rs 3.03 lakh crore. Of the total allocation of Rs 3.03 lakh crore over the next five years, the central government’s share will be Rs 97,631 crore.

The power distribution scheme will provide financial assistance to discoms for infrastructure creation, system upgrade, capacity building, and process improvement. It also aims to bring state-specific intervention in place of “one-size-fits-all”.

Minister for Power and New & Renewable Energy Minister R K Singh said, “We have done a lot for power distribution reforms. But, it needs to be strengthened. Today, the Cabinet has approved the new scheme worth Rs 3.03 lakh crore including Rs 97,000 crore central outlay.”

State discoms have to pre-qualify criteria such as publication of audited financial reports, upfront liquidation of dues/subsidy of state governments to discoms and non -creation of additional regulatory assets to avail of the scheme.

Source
CNBC
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