Weekly Power Sector Round up: 3rd July 2021

Power demand set to rise again as COVID 2nd wave subsides: Ind-Ra

India’s power demand is set to improve in July 2021 with the COVID 2nd wave subsiding and subsequent reopening of commercial establishments all over the country, according to a report by India Ratings and Research (Ind-Ra).

Power demand has continued to see a year-on-year recovery in June 2021. However, demand is still below the pre pandemic levels, due to restrictions in many parts of the country.

Cabinet approves Rs 3.03 lakh-crore scheme for power distribution sector

The Cabinet committee has approved a reforms based and results linked power distribution sector scheme that aims to improve the operational efficiency and financial sustainability of DISCOMs.

The scheme, worth Rs 3.03 lakh crore, will provide conditional financial assistance to strengthen the supply infrastructure of DISCOMs. The financial assistance will be based on meeting pre-qualifying criteria and upon achievement of basic minimum benchmarks.

The scheme will remain in effect until 2025-26 with PFC and REC acting as nodal agencies for implementation.