Govt To Roll Out New Tariff Policy, Uday 2.0 To Settle Discoms Losses
Millennium Post Delhi|September 09, 2019
Govt To Roll Out New Tariff Policy, Uday 2.0 To Settle Discoms Losses
The total outstanding of the discoms to gencos as of July this year stood at Rs 73,425 crore

NEW DELHI: The government is in the process of rolling out a new tariff policy and UDAY 2.0 to address the issue of losses of discoms, which is the "only difficulty" in ensuring round the clock electricity supply for all, Power Minister R K Singh said.

According to the PRAAPTI portal, the total outstanding of the discoms to gencos as of July this year stood at Rs 73,425 crore, including the overdue amount of Rs 55,276 crore.

The dues to discoms become overdue after 60 days of non-payment of the bill, allowing gencos charge penal interest on that.

"There is a capacity to transfer (supply) any quantum (of power). There is no reason why 24X7 power cannot be given. The only difficulty in this (24X7 power for All) is losses to some distribution utilities. They don't have money to pay for power," Singh said.

About the steps being taken by the government, the minister said that the central government has already made it mandatory for discoms to open letters of credit for getting supply from gencos, excluding state government power plants from August 1, 2019.

He was of the view that the mandatory opening of letter of credit, would take some time to reduce stress on power generation companies.

He said that new tariff policy has already gone to the Cabinet for vetting and approval while the power ministry is working on the UDAY 2.0 scheme which would be launched this fiscal only.

articleRead

You can read up to 3 premium stories before you subscribe to Magzter GOLD

Log in, if you are already a subscriber

GoldLogo

Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines

READ THE ENTIRE ISSUE

September 09, 2019