Budget 2020: Power sector poised for reforms
The power sector is poised for key reforms in distribution, the weakest link in the electricity value chain, as the budget contained proposals that are expected to alleviate stress and boost investment.
Power and renewable energy minister RK Singh said the government was determined to set the sector right and would soon announce schemes to revive ailing discoms, liquidate discom dues and amend the Electricity Act to introduce hefty penalties on reneging of any kind of contract. Power Finance CorporationNSE 0.73 % will set up an alternate investment fund to assist state distribution companies in repaying the over Rs 83,500 crore dues to thermal power plants while Indian Renewable Energy Development Agency (Ireda) will set up a similar fund to help clear dues to renewable plants, Singh said after Finance Minister Nirmala Sitharaman presented the Budget.
