Connect with us

Business

Govt depts owe Rs 97,000 cr to discoms, Haryana tops with Rs 46,193 cr dues

blank

Published

on

blank


As state-owned power distribution companies (discoms) gear up for the new Rs 3 trillion reform scheme, a major problem in their own backyard can prevent them from being eligible for it. Several state government departments owe a massive Rs 97,000 crore to discoms in terms of unpaid or delayed electricity bills.


There is also an additional Rs 60,743 crore electricity subsidy that is yet to be paid to the discoms from the state government, data compiled by the union ministry of power revealed. Several state governments give subsidy on electricity to a section of population. This amount is later paid back to the discoms.





The highest government dues are in Haryana where discoms are owed Rs 46,193 crore. Rajasthan is where the unpaid subsidy amount is the highest at Rs 18,313 crore.


Among the several eligibility criteria for the new discoms reform scheme, the state government is supposed to clear their dues to the discoms. The pre-qualifying criteria mandates the state government to clear dues, subsidy amounts and install prepaid meters in all government offices in the state.


The state electricity regulatory commissions are also responsible to ensure the installation of prepaid meters. The regulators are also to ensure that there is regular electricity tariff revision. Discoms on the other hand are required to publish their quarterly and annual accounts. They are also mandated to clear their dues to power generating and transmission companies.


Only those discoms and states who meet the pre qualifying criteria will be eligible for the skin and the fund release for the infrastructure works under it would be done accordingly. The scheme also has a result evaluation matrix under which only a minimum score of 60 would ensure future fund release by the central government. The central government grant under the scheme is only 60 per cent of the total fund corpus.


Senior government official said the state governments can borrow from sector lenders Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). However their lending will also follow the same criteria as under the reforms scheme.


“PFC and REC will not extend any loan to loss making discoms for those who have no trajectory to reduce their operational and financial losses,” said the official. PFC and REC are also nominated as nodal agencies for facilitating implementation of the scheme.


The new ‘Reforms-based and Results-linked, Revamped Distribution Sector Scheme’ seeks to improve the operational efficiencies and financial sustainability of all discoms/power departments (excluding private sector discoms) by providing conditional financial assistance to discoms for strengthening of supply infrastructure.


The Scheme will have an outlay of Rs 3,03,758 crore with an estimated gross budgetary support from the Central Government of Rs 97,631 crore. All the existing power sector reforms schemes namely DDUGJY, IPDS, PM-KUSUM scheme would be subsumed into this umbrella program. Singh said till yet Rs 2 lakh crore has already been given to the states under these schemes.


State-owned discoms across the country and financially and operationally beleaguered despite four reform schemes in the last 15 years. The earlier discom reform scheme UDAY concluded in FY20 with most of the states failing to meet their stipulated targets and still in red.

Dear Reader,

PRESS24 NEWS has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to PRESS24 NEWS.

Digital Editor


Disclaimer: This post has been auto-published from an agency/news feed without any modifications to the text and has not been reviewed by an editor.

Source link

Business

Business News | Stock and Share Market News

blank

Published

on

blank

















Moneycontrol


Moneycontrol PRO


Moneycontrol PRO















Shrikant Chouhan of Kotak Securities advised that contra traders can take a long bet near 17,700 with a strict 16,650 support stop loss, while partial profit booking is advisable between 18,100 to 18,200 level..

Trade setup for Monday: Top 15 things to know before Opening Bell




Name Price Change % Chg
Indiabulls Hsg 225.85 -3.80 -1.65
Sbi 440.75 -9.05 -2.01
Ntpc 124.25 -1.95 -1.55
Nhpc 27.95 0.20 0.72

Forum

Forum

YOUR OPINION

Which of these youngsters will score more runs this ipl?

Which of these youngsters will score more runs this ipl?

COMMENTS

Thank You for Voting