Govt working on package to offer loans to state distribution companies
NEW DELHI: The government is working on a package to offer loans to state power distribution companies to help them clear dues of electricity generation plants to prevent blackouts as the projects face a severe liquidity crisis.
The power ministry is arranging loans from Power Finance Corp and REC LtdNSE -0.06 % to distribution companies that can be used only to clear portion of the ₹92,000 crore dues they owe to power plants, a senior power ministry official said. ET had on March 24 reported that recovery of dues by private plants from discoms has been significantly impacted as they are not able to make collections due to the lockdown.
