NEW DELHI: State discoms ( power distribution companies) will save Rs 19,833 crore on late fee in the next 12 to 48 months from an surcharge-free instalment scheme being rolled out by the power ministry to help them clear their accumulated dues to gencos (generation companies), a major drag on the sector.
The savings from the scheme, first reported by TOI on May 18, will lead to reduced tariff burden for consumers as it will be passed on. The scheme is a one-time offer, the power ministry said on Wednesday.
The scale of savings can be gauged from the fact that Maharashtra and Tamil Nadu, which have very large outstandings against gencos, will save Rs 4,500 crore each in surcharge payment. Others such as Andhra Pradesh, Jammu & Kashmir, Rajasthan and Telangana are estimated to save between Rs 1,100 crore and Rs 1,700 crore.
