Gencos hope govt’s liquidity infusion will lead to long-term reforms

MUMBAI : The ₹90,000-crore liquidity infusion is a much-needed lifeline for state-owned power distribution companies (discoms), but power generators (gencos) said it should be strongly linked to reforms ensuring operational efficiencies.

Gencos are also awaiting the fine print and the interest rates of the liquidity plan, which will decide whether they will avail of it or not.

State-owned Power Finance Corp. (PFC) and Rural Electrification Corp. (REC) will infuse liquidity by raising about ₹90,000 crore from the market against the receivables of discoms. State governments will provide a guarantee.