R K Singh directs states to clear dues of power generating companies
NARMADA (GUJARAT): Power minister R K Singh on Friday directed the state governments to clear dues of power generation companies, a step which he said will boost investor sentiment and attract investments.
The minister said that attracting investments is one of the major challenges that is being faced by the sector.
“Today the outstanding bills for generation companies is Rs 59,000 crore. Looking at this who will come and invest in the sector?,” he said while speaking at the two-day conference of power and new, renewable energy ministers of states and union territories here.
He said state departments owe about Rs 49,000 crore to electricity distribution companies (discoms), so if this amount is recovered then a large portion of dues will be cleared which will ultimately lessen the burden on the power producers.
