Power minister proposes a new scheme worth Rs 3 lakh crore to finance commission

Power minister RK Singh proposed a new scheme for the power sector amounting to Rs 3 lakh crore spanning five years, in his meeting with the 15th Finance Commission (FC) on Friday.

Officials of the power ministry discussed the need to restructure the power system to make states responsible for the financial health of their power distributions companies (discoms), with the NK Singh-led FC.

This would entail recalibrating state borrowing limits under the Fiscal Responsibility and Budget Management (FRBM) Act, to account for the added liabilities, the press release said.

The new scheme included an amalgamation of old schemes under the power ministry and focused on reducing losses in the power sector, separate feeders for agriculture and smart prepaid meters

The minister also discussed policy reforms that were in the pipeline to turnaround the beleaguered power sector, including amendments to the Electricity Act.

ET Energy World
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