RK Singh approves major relief measures for power sector

Amid nationwide lockdown in the wake of coronavirus, Union Power Minister RK Singh said that his ministry is committed to provide 24x7 supply of electricity to all consumers.

"Despite the lockdown imposed to contain the spread of the COVID 19 pandemic, the whole workforce of the power sector - generation, transmission, distribution and system operations - is working round the clock to keep all homes and establishments lighted," read a statement from the Ministry of Power.

Around 70 per cent of power generation is from coal-based power plants. In order to maintain the continuity of supply of coal by domestic coal companies and transportation by Railways, the ministry is in touch with the Ministries of Railways and Coal, the statement added.It stated that consumers are unable to pay their dues to the distribution companies (Discoms) due to the lockdown. This has affected the liquidity position of the Discoms thereby impairing their ability to pay to the generating and transmission companies. In this context, RK Singh has approved significant relief measures for the power sector.

Among these are CPSU generation/transmission companies will continue supply/ transmission of electricity even to Discoms which have large outstanding dues to the generation/transmission companies. During the present emergency, there will be no curtailment of supply to any DISCOM, the statement added.Till May 31, the payment security mechanism to be maintained by the distribution companies with the generating companies for dispatch of power shall be reduced by 50 per cent.Moreover, directions have been issued to the Central Electricity Regulatory Commission to provide a moratorium of three months to Discoms to make payments to generating companies and transmission licensees and not to levy penal rates of late payment surcharge. State governments are being requested to issue similar directions to State Electricity Regulatory Commissions.