On May 13, 2020, the centre announced its plan to infuse Rs 90,000 crore liquidity to cash-starved state electricity distribution companies (discoms). “Discoms today are facing unprecedented cash flow problems,” finance minister Nirmala Sitharaman said while announcing package.
Power Finance Corporation (PFC) and REC Ltd will infuse the fund by raising Rs 90,000 crore loan from the market against the receivables of discoms. The discoms must utilise this fund only to clear their dues to electricity generating companies and transmission firms. However, the state governments have to provide a guarantee, the minister said.
