Govt may lower tariffs to bail out power sector
NEW DELHI : India will shortly announce a power sector package that may involve a temporary tariff reduction, concessional finance, and payment of around ₹1 trillion dues of electricity distribution companies (discoms), two government officials said, as part of the stimulus plan announced by Prime Minister Narendra Modi on Tuesday evening.
The stimulus package, details of which are awaited, is aimed at combating the economic disruption from the coronavirus lockdown.
As factories stayed shut during the lockdown, India’s electricity demand load shifted to homes, resulting in lower realizations. With peak electricity demand coming down, commercial and industrial power demand has taken a hit.
