The Union cabinet is likely to approve next week a package for discoms (distribution companies) reeling under revenue loss because of lower power demand amid the coronavirus lockdown, including the setting up of an alternative investment fund to pay off their dues towards electricity generation companies, a source said.
“The cabinet in the coming week can approve a package for power distribution utilities (discoms) which are under stress due to lower demand and cash crunch,” the source said.
“The package may include creating an alternative investment fund to pay off dues on behalf of the discoms to gencos (generating companies). The discoms may be charged a nominal interest rate and administrative expenses on that,” he added.
