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Home / Business News / Rs 90,000 crore liquidity boost for discoms: Nirmala Sitharaman

Rs 90,000 crore liquidity boost for discoms: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman announced this as one of the 15 measures to combat the economic effect of coronavirus pandemic induced lockdown, which has worsened the already precarious finances of these discoms.

business Updated: May 13, 2020 17:57 IST
hindustantimes.com| Edited by: Meenakshi Ray
hindustantimes.com| Edited by: Meenakshi Ray
Hindustan Times, New Delhi
This one-time time liquidity infusion will help in clearing the outstanding dues of the power discoms by state-owned financial institutions.
This one-time time liquidity infusion will help in clearing the outstanding dues of the power discoms by state-owned financial institutions. (Sakib Ali/ HT file photo. Representative image )

The government will provide Rs 90,000 crore for the fund-starved distribution companies (discoms) as part of its strategy to bring the country’s battered economy back on track, Union finance minister Nirmala Sitharaman said on Wednesday.

Nirmala Sitharaman announced this as one of the 15 measures to combat the economic effect of coronavirus pandemic induced lockdown, which has worsened the already precarious finances of these discoms.

Also read| Sitharaman announces boost to MSMEs; EPF support to workers, businesses: Key points

“Discoms today are facing unprecedented cash flow problems,” Sitharaman said during a press conference.

This one-time time liquidity infusion will help in clearing the outstanding dues of the power discoms by state-owned financial institutions.

Also read: Govt announces Rs 50,000 cr Fund of Funds to boost MSMEs

State-owned Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) will infuse the liquidity by raising an amount of about Rs 90,000 crore from the market against the receivables of discoms. The state governments will provide a guarantee.

This will be used to pay the central public sector power generation companies, transmission companies, independent power producers and renewable energy generators.

All this will be passed on to the final consumers or industries.

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