HYDERABAD: The State government will come to the rescue of the Discoms in case they require any additional financial assistance to give Letters of Credit (LCs) to banks for purchase of power from August 1. There will be no problem in providing 24X7 power supply, top officials in the State government confirmed this to Express on Tuesday.
The Ministry of Power issued an order that the Discoms should give LCs to bankers while making power-purchase agreements. According to sources, the Discoms have to submit LCs to banks while purchasing power from Central Generating Stations (CGS) and IPPs like solar, wind and other private power generating stations. The LCs will not come into the picture when Discoms are taking power from State Generating Stations, sources said.
