Schemes for discom revival, discom dues liquidation soon: RK Singh
NEW DELHI: Power minister R K Singh on Saturday said the government will soon bring out schemes for discom revival, liquidation of discom dues and amend the Electricity Act to introduce hefty penalties on reneging of any kind of contract.
Singh said Power Finance CorporationNSE 0.73 % will set up an alternate investment fund to assist state distribution companies repay over Rs 83,500 crore dues to thermal power plants. Ireda will set up a similar fund for states to help clearing dues to renewable plants.
He said his ministry is working on a schedule for repayment of the discom dues from distribution companies to power plants over a period of six months. The quick amendment to Electricity Act would ensure that discoms and generators do not renege on contracts or payments in the future.
