- Distribution companies have to pay 94000 crore rupees to power generation companies and transmission companies.
- Finance Minister Nirmala Sitharaman held the fourth press conference on Saturday for the Prime Minister's package of 20 lakh crores
May 16, 2020, 06:26 PM IST
new Delhi. Finance Minister Nirmala Sitharaman held a fourth press conference on Saturday for the Prime Minister's stated package of 20 lakh crore to overcome the crisis of Corona epidemic. In it, he said that power companies will be privatized in union territories. This will boost power generation. On Wednesday, Finance Minister Nirmala Sitharaman announced a grant of Rs 90,000 crore to promote the power generating companies of the states going through difficult circumstances.
What have you declared? Power distribution will be privatized in the union territories. This will provide better service and develop as a model in power distribution. The rest of the states will also be inspired by them. This will bring stability in the electricity sector. Power generation companies will be paid on time. Also the subsidy will be given through DBT.
For whom- This move of the government can also benefit the customers along with the power companies. Discom companies' decision to not let the impact of their customers fall on the customers will be facilitated.
What will be the benefit? Electricity companies will get money on time. Consumers will get their rights. Discom will have to provide adequate power. The power generating companies will be selected on the basis of facilities. The power companies will get the money on time, this will be taken care of. Smart pre-paid meters will be installed. Discom privatization steps are being taken in the Union Territories, this will improve the service. 8100 crore will be provided for the social infrastructure project. This amount will be given on the basis of 30% Viability Gap funding.
Social Infrastructure- Viability gap funding has been changed to attract private investment in social infrastructure such as hospitals and schools. The government has increased it from 20 percent to 30 percent. This will bring private investment. A provision of Rs 8100 crore has been made for this.
Distribution companies will get relief from debt
Distribution companies have to pay 94000 crore rupees to power generation companies and transmission companies, but they are short of money. This one-time liquidity infusion will enable payments to power generation companies, transmission companies, private companies and renewal energy generators of the central public sector. PFC and REC owned by the State Governments have assets worth six lakh crores. They are the largest lending companies in the power sector.
Power Finance Corporation and Rural Electrification Discom will benefit
Power Finance Corporation and Rural Electrification Corporation discom companies will get this help. Actually, due to both the previous lockdowns, coronaviruses, etc., the income of power distribution companies has come down drastically. Due to this provision has been made for companies producing and distributing electricity.