Good things sometimes come with strings attached. The Centre’s ₹90,000 crore liquidity support will ease the financial logjam at power distribution companies (discoms), helping them clear pending dues.
But the stipulation that central public sector enterprises offer rebates and forgo fixed costs for power not consumed during the lockdown will adversely impact earnings of electricity generators and transmission companies.
Shares of NTPC Ltd and Power Grid Corp. of India Ltd lost 3-4% on Thursday. Even the stocks of the companies that will provide liquidity support fell. Power Finance Corp. Ltd (PFC) and REC Ltd were down 1-4%.
