POWER

PGCIL Approves ₹10.75 Billion as Rebate to DISCOMs on ISTS Charges Amid COVID Crisis

The Power Grid Corporation of India Limited (PGCIL) announced that it had approved ₹10.75 billion (~$142.5 million) as a one-time consolidated rebate to distribution companies (DISCOMs) and power departments of states and union territories.

The state-owned power transmission company had recently received a letter from the Ministry of Power to consider offering a rebate of 20-25% to DISCOMs on the interstate transmission (ISTS) charges levied by it. The rebate will be provided for passing on the benefit to the end consumer. The ministry had asked PGCIL to consider the rebate for the lockdown period on account of the coronavirus crisis.

Recently, the stimulus package announced by the government said that the DISCOMs would receive ₹900 billion (~$12.03 billion) to help them recover from the impact of COVID-19 pandemic. This one-time liquidity injection will be made available through the Power Finance Corporation (PFC) and REC Limited in two equal installments.

In an in-depth analysis, Mercom reported why such financial bailouts are not the best way to help the sinking DISCOMs.

Source
mercom india
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