Kolkata: The Union Power Ministry’s recent directive on the payment security mechanism, once implemented, is expected to result in an improved payment pattern from the discoms and would therefore certainly be positive for power generation companies. Experts, however, feel that the move is not without challenges, particularly challenges in securing LCs for large sums by the discoms.
Interestingly, the ministry of power has recently issued directions to the National Load Dispatch Centre (NLDC) and Regional Load Dispatch Centres (RLDC) to schedule and dispatch power from generation companies to distribution utilities (discoms) only after implementation of payment security mechanism.
