PM Modi holds meeting with Power Ministry; discusses DISCOMs & renewable energy projects

Prime Minister Narendra Modi on Wednesday evening reviewed the work of Ministry of Power and Ministry of New and Renewable Energy. As per sources, policy initiatives including revised Tariff Policy & the Electricity (Amendment) Bill 2020 to redress the problems afflicting the power sector were discussed.

PM Modi also advised the Ministry of Power to ensure that DISCOMs publish their performance parameters periodically. He also expressed the desire to expedite the plan for carbon-neutral Ladakh and emphasized for drinking water supply in coastal areas by harnessing the solar and wind energy, as per sources.

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Centre infuses liquidity into DISCOMs

While addressing a press brief on the breakup of the Rs 20 lakh crore stimulus fund under Aatmanirbhar Bharat package, Finance Minister Nirmala Sitharaman earlier this month had announced Rs 90,000 crore liquidity infusion into cash-strapped power distribution companies (DISCOMs), facing demand slump due to the lockdown to contain COVID-19.

This money was being allocated to help the DISCOMs to repay most of the Rs 92,000 crore outstanding payments that they owe to power generators, restarting the virtuous cycle of liquidity, higher investments and rapid growth for the power sector. The Energy sector players had hailed the government's move to infuse liquidity into power distribution companies, saying the stimulus will breathe fresh life into the power sector.  Renewable energy projects having PPAs (power purchase agreements) with DISCOMs are also said to benefit from the move.

Read: Energy Sector Players Cheer Stimulus, Says Steps Towards Self-reliance

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(With Agency Inputs)