REC sanctions Rs 22,000 crore to discoms under new LPS mechanism
In a step towards addressing the issue of mounting dues of state power utilities, which has now crossed Rs 1.5 trillion, REC, the state-run financial institution in the power sector, has sanctioned Rs 22,000 crore to power distribution companies (discoms) under the government’s Late Payment Surcharge (LPS) rules.
According to a statement issued by REC, formerly Rural Electrification Corporation, major states such as Rajasthan, Jharkhand, Tamil Nadu, Maharashtra, J&K, Madhya Pradesh and Uttar Pradesh, with pending power purchase dues to the tune of almost Rs 96,000 crore will be complying with the rules.
