Budget may introduce next leg of Discom reforms
The Centre’s second leg of power distribution company (Discom) debt and loss reduction reforms may feature in the upcoming Budget, according to Minister of State (Independent Charge) for Power and Renewable Energy, RK Singh.
In response to a query on what can be expected in the Budget for the power sector, he said: “We are addressing the requirements of power distribution companies…to ensure 24×7 supply. We are providing an assistance scheme for the reduction of losses. This assistance will be in terms of technology and modern equipment to help address the losses. Now, there will be only one scheme for the Ministry of Power, which will include elements of earlier schemes.”
“The scheme has a condition that the Discom must work out a trajectory for loss reduction and adhere to it. Funds under that scheme will be released only if the trajectory is adhered to,” he added. He was speaking on the sidelines of Power Finance Corporation’s (PFC) listing ceremony of $750 million in foreign currency bonds on the NSE.
