Cabinet relaxes working capital norm for discoms to get loan under Rs 90k crore liquidity plan

The Union cabinet on Wednesday approved a proposal to relax working capital limit norm for discoms under the Ujwal DISCOM Assurance Yojana (UDAY) to get loans as part of Rs 90,000 crore liquidity infusion scheme.

After the Cabinet meeting, Union Minister Prakash Javadekar in a press conference said, “Power sector has a problem. There is a slump in power consumption. The bills are not being collected by them. PFC and REC have been allowed to give loans above the limit more the 25 per cent working capital limit. This will increase liquidity of the state discoms”.

“The working capital limit is 25 per cent of last year’s revenue. Now the limit is relaxed,” he further said.