Letters of credit for power supplies: UP seeks more time
The Uttar Pradesh Power Corporation and state distribution companies (discoms) have sought some time after a recent order from the power ministry made it mandatory for discoms and other utilities to provide letters of credit to the generation companies (gencos) as an assurance of payment in lieu of power supplies. The ministry’s move comes into effect on August 1.
The payment assurance can be given with either letters of credit (LCs) for power supplies or discoms need to pay in advance for the electricity they plan to purchase.
