NEW DELHI: Renewable energy companies expect a boost to their business as well from the Rs 90,000 crore liquidity support the government announced on Wednesday for power distribution companies.
Industry executives and experts said the package was much-needed amid the disruption caused by the Covid-19 pandemic, but also cautioned that such measures would not work in the long term.
Renewable energy companies, like other power producers, have been plagued by delays in payment by cash-strapped discoms. With a likely improvement in liquidity, they hope the distributors would start clearing the dues. Industry executives also expect the discoms, which have long-term power purchase agreements with renewable energy companies, will allow them to sell electricity in the open market.
