PFC-REC loan amount for nightclubs may increase to Rs 1.25 lakh crore
The loan amount for state-run distribution companies (discoms) offered by the Center may be increased to Rs 1.25 lakh crore from Rs 90,000 crore designated earlier at the request of states, said the Union Energy Minister RK Singh.
The Center had announced the cash injection program to erase contributions owed by discoms to private and public power generation companies through March, but several states, citing the additional stress of discoms due to the shutdown of the coronavirus, want the loan to take care of their outstanding debt until June, the minister added.
Singh was addressing ministers of state government power via video conference. A sum of Rs 20,000 crore in program loans has been approved to date.
The Center and the States also discussed the new nightclub redevelopment program, which will encompass existing central government programs for the electricity sector, such as the Integrated Electricity Development Program (IPDS) and Deen Dayal. Upadhyaya Gram Jyoti Yojana (DDUGJY).
The cumulative expenditure of these two programs (launched in FY15) is Rs 1.1 lakh crore.
The minister said the new program would give states more flexibility on how they wish to use the funds to relaunch their discos. However, these state-run entities will need to develop a loss reduction trajectory, and funds – in the form of loans and grants – under this program would only be released if the trajectories are followed.
The controversial issue of the proposed amendments to the Electricity Law was also discussed at the conference, after which it was decided that the current version of the draft amendments would be amended after considering the suggestions of all parties. stakeholders, including state governments. As FE reported earlier, after several states protested against the proposed amendments, alleging that the new provisions weaken their power to appoint electricity regulators, the Center began to consider maintaining the existing framework of committees. separate selection for each state.