Discoms lacking in account checks, subsidy may miss out on financing
Electricity distribution companies that lack proper energy accounting systems and don’t receive regular subsidy payment from states are not likely to qualify for loans from power sector financiers Power Finance Corp and RECNSE -1.58 % Ltd, people aware of the development said.
The government proposes to ask PFCNSE 0.68 % and REC to revise their prudential norms for credit sanction to make them stringent for discoms, they said.
An official said the distribution companies would be required to maintain precise energy accounting with updated monthly reports showing accurate details on metering and commercial losses to avail loans from the two infrastructure financing companies. Presently, states provide this data after a gap of months, he said.
