Corporate tax cut to result in Rs. 2,500 cr savings for DISCOMs
The Centre’s corporate tax cut is expected to result in savings of up to Rs. 2,500 cr a year for state distribution companies, according to ratings firm Icra.
This move should allow power generators to pass on benefits to DISCOMs. The benefit accrued by the DISCOMs in turn would enable them to lower their cost of supply and hence, reduce the gap between average tariff and cost of power supply by about 3 paise per unit sold at all India level.
Power GENCOs’ outstanding dues on DISCOMs rise 57% in August
Outstanding dues owed by distribution companies to power producers rose around 57% to Rs 78,020 crore in August 2019 as compared to August 2018, according to web portal PRAAPTI (Payment Ratification and Analysis in Power procurement for Bringing Transparency in Invoicing of generators).
Out of this Rs 78,020 cr, Rs 59,532 is the overdue amount, which is the amount that has been outstanding for more than 60 days.
Core sector output declines by 0.5% in August
The eight core industries, viz.: coal, crude oil, natural gas, cement, refinery products, steel, fertilizer and electricity, recorded a 0.5% decline in their output in August 2019. These sectors had expanded by 4.7% In August 2019.
Electricity output declined by -2.9% in these sectors, according to the data of the Commerce and Industry Ministry.