Central govt offices to pay in advance for energy use

The government has allowed central ministries and entities under their control to pay for energy consumption in advance without seeking bank guarantees from power distribution companies (discoms) in a significant step to promote smart pre-paid meters, two officials said.

The decision is in sync with the ₹3.05 lakh crore “revamped reforms-based result-linked power distribution sector scheme” that finance minister Nirmala Sitharaman announced in the Budget on February 1, they said requesting anonymity.

This assumes significance given that outstanding dues of government departments accounted for ₹48,664 crore at the end of the 2020-21 financial year.