The government on Wednesday announced a ₹90,000 crore liquidity injection into fund-starved electricity distribution companies (discoms) as part of a stimulus package to revive the country’s battered economy.
The announcement, made by finance minister Nirmala Sitharaman, is one of the measures in the first tranche of a stimulus package to combat the economic disruption that has worsened the precarious finances of discoms.
“Discoms today are facing unprecedented cash-flow problems,” Sitharaman said.
Electricity demand load shifted to homes during the lockdown, resulting in lower realizations. With peak electricity demand coming down, commercial and industrial power demand has taken a hit after many factories shut.
