Power Distribution Companies (Discoms) will be offered ₹90,000 crore liquidity support under the ‘Aatmanirbhar package’ announced by Finance Minister Nirmala Sitharaman on Wednesday.
Under the package, Power Finance Corporation and Rural Electrification Corporation will infuse liquidity in the Discoms to the extent of ₹90,000 crores in two equal instalments, an official statement said.
According to sector watchers, this package is laudable but its finer contours like the rate of interest at which this liquidity support will be offered will be the key to its success. The Discoms were undergoing severe stress due to non-payments by large, commercial and industrial consumers.
