RENEWABLE ENERGY

Solar Association Asks ₹50 Billion Fund Allocation for Cash-Strapped Andhra DISCOMs

The National Solar Energy Federation of India (NSEFI) has requested the Union Power Minister R.K. Singh to set aside ₹50 billion (~$666.2 million) from the distribution companies (DISCOMs) liquidity package for Andhra Pradesh DISCOMs so their dues can be paid to renewable generators.

The NSEFI letter said that such an action on the part of the central government would go a long way in ensuring the financial sustainability of the renewable generators that have signed power purchase agreements (PPAs) with Andhra Pradesh government.

In May 2020, the central government announced that power distribution companies would receive ₹900 billion (~$12.03 billion) as part of the Government of India’s stimulus package to help the Indian economy recover from the coronavirus crisis. These funds were intended to help DISCOMs out of this unprecedented situation as their revenues have dropped drastically, Sitaraman noted, adding that loans would be given against state guarantees solely for clearing liabilities to power generating companies.

According to NSEFI, the members of the federation, which include developers, EPC (engineering, procurement, construction) contractors, rooftop installers, and system integrators, expect relief and are looking forward to disbursements from the Power Finance Corporation (PFC) and REC Limited.

Source
mercom india
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