PowerMin announces second special scheme in two years to clear discom dues

For the second time in two years, the union ministry of power has notified a scheme for the power distribution companies (discoms) to defer their dues towards the power generating companies (gencos). With the dues of the discoms touching a record high of Rs 1 trillion, the ministry has proposed a scheme to liquidate the discoms’ dues.

The proposed scheme would enable the discoms to pay their dues in 48 instalments, said the notification by the ministry. It has also proposed to provide one-time relaxation to all the discoms wherein the amount outstanding -including principal amount and late payment surcharge (LPSC) on the date of notification of the scheme will be frozen LPSC will not be imposed further.