Rs 3.03 lakh crore power reforms scheme cleared by Cabinet

The Union Cabinet on Wednesday cleared a Rs 3.03 lakh crore scheme under which state power distribution companies will receive grants each year only if they achieve the milestones agreed for the previous fiscal.

As per the five-year programme, reforms-based, result-linked scheme for financial assistance to discoms if a utility is found ineligible any year, then the gap in funding to complete its projects will have to be met by the discom or its state government, a senior government official said. However, the unmet targets for one year get added in the targets for the next year.