NEW DELHI: The Centre on Wednesday rolled out a highly-awaited relief measure for cash-strapped, debt-ridden power distribution companies (Discoms). The move, part of the Rs 20 lakh crore Atma Nirbhar Bharat Abhiyan relief package, will see discoms get a liquidity infusion of Rs 90,000 crore — enough to help them pay off over 95 per cent of their current dues to power generation companies (Gencos).
Experts say the liquidity infusion comes as a much needed breather to discoms, who cumulatively owe around Rs 94,000 crore to gencos currently. However, some also warn that since these loans are being issued against state guarantees, the move may raise concerns over respective states’ ability to deal with increased debt levels.
