NEW DELHI : The union government has approved a financial relief package for the power sector, that entails a three month moratorium on state owned electricity distribution companies (discoms) to make payments for the electricity bought by them, and reducing the payment security amount by half for future power purchases.
These measures including waiving penalty for late payments, are part of the government’s efforts to ensure round-the-clock electricity supply during the three week long countrywide lockdown to prevent the spread of coronavirus (COVID-19) pandemic.
“Due to the lockdown, consumers are unable to pay their dues to the distribution companies (discoms). This has affected the liquidity position of the discoms thereby impairing their ability to pay to the generating and transmission companies,” union power ministry said in a statement on Saturday.
