Power Minister says Rs 90,000 cr relief for DISCOMs to be passed to consumers, industries

Union Power Minister RK Singh on Wednesday lauded Centre's announcement of allocating Rs.90,000 crore liquidity injection for DISCOMs. According to the Minister, it is a big relief to the power sector as it will improve its viability as the power sector was negatively affected due to lockdown as demand was down and the revenues of DISCOMs were plummeting. 

Speaking to news agency, ANI, he said, "This package will enable the power distribution companies to pay to the power generation companies for the outstanding dues. The generation companies then can pay for coal and railways for transportation of coals. The government has also decided to waive off the fixed charges and interstate transmission charges (by power grid) against the power not drawn from power generating PSUs like NTPC, others." 

He further added that the Central power generation companies will give a rebate to DISCOMs which shall be passed on to the final consumers and industries. He also thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for announcing the package. 

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FM announces relief measures 

Union Finance Minister Nirmala Sitharaman on Wednesday unveiled the first set of 15 relief measures for various sectors amid the COVID-19 lockdown. The measures to revitalize the MSME sector include Rs.3 lakh crore collateral-free automatic loans for businesses, including MSMEs, Rs. 20,000 crore subordinate debt for MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, revising the definition of MSMEs and the prohibition of global tenders in government procurement tenders up to Rs.200 crore.

Read: Coronavirus Live Updates: Total cases rise to 74,281; FM announces 1st tranche of stimulus

Other measures such as Rs.2500 crore EPF support for business and workers for 3 more months, reduction of EPF contribution for business and workers for 3 months, Rs.30,000 crore liquidity facility for NBFCs/HFCs/MFIs, Rs.45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs and Rs.90,000 crore liquidity injection for DISCOMs were also announced. Furthermore, the registration and completion date of all registered projects expiring on or after March 25, 2020, shall be extended suo-moto by 6 months. The due date of income tax return, tax audit, assessments, and the 'Vivad se Vishwas' scheme has also been extended. Additionally, all Central agencies shall provide an extension to construction work, service contracts, etc. by 6 months. 

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(With ANI Inputs)