Cabinet relaxes working capital norm for discoms to get loan under Rs 90,000 crore liquidity plan
NEW DELHI: The Union Cabinet on Wednesday chose to grant significant relief to stressed power distribution companies (discom), extending a one-time relaxation in thresholds which govern whether discoms can get working capital loans under the Ujjwal Discom Assurance Yojana (UDAY) scheme.
The move is a crucial one, since the Centre’s Rs 90,000 crore liquidity relief programme for discoms is to be disbursed under UDAY by state-run power sector financiers: REC Ltd. and PFC Ltd. Under UDAY guidelines, discoms can get working capital loans of only up to 25 per cent of the previous year’s revenues.
