Hyderabad: Power utilities of the southern States and a Union Territory are getting ready with the Letter of Credit system for power purchases from August 1 as mandated by the Centre, a member of the Southern Regional Power Committee (SRPC) said here on Tuesday.
The Centre last month approved the proposal for implementing a payment security mechanism for purchase of electricity by distribution companies from generating firms.
The power ministry has made it mandatory for discoms to open and maintain adequate Letter of Credit (LC) as payment security mechanism under Power Purchase Agreements (PPAs) for buying electricity from generating firms from August 1, 2019.
