Non-compliant state-run electricity distribution companies (discoms) run the risk of losing their share of the Rs 90,000 crore loan that the government announced on Wednesday to inject liquidity into the segment. If discoms do not take appropriate steps to reduce their losses, they would be denied the facility, Union power minister RK Singh said on Thursday.
The loans from sector-specific lenders REC and PFC will be made available “only if the discom concerned draws up a loss-reduction trajectory and gets it approved by the state government,” Singh said, adding that “if those steps are not complied with, the state-run lenders would have the freedom to recall the loans”.
