NEWS & UPDATES

Weekly Power Sector Round up: 16th May 2020

DISCOMs in Union Territories set to be privatised

Finance Minister Nirmala Sitharaman announced that DISCOMs in Union Territories are set to be privatised as part of the structural reforms initiated in the wake of the Coronavirus pandemic.She indicated that privatisation of power distribution would be carried out completely involving all power departments and utilities and will set a model for similar reforms to follow in the states.

Power distribution in the UT of Delhi has been privatised in the 2000s and this experience will be shared with other UTs to implement privatisation.


DISCOMs to be infused with liquidity worth Rs. 90,000cr from PFC-REC

As part of its stimulus package in the wake of the Coronavirus pandemic, the Government of India has announced an infusion of Rs. 90,000cr into the ailing DISCOMs through Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC).

Liquidity will be infused in the form of loans that will be given against state guarantees for the exclusive purpose of paying the generation companies.