Govt likely to hike liquidity package for discoms to Rs 1.25 trillion

"Ministry of Power has firmed up a proposal to hike the Rs 90,000 crore liquidity package for discoms to Rs 1.25 trillion," a source privy to the development said

The government is likely to enhance the liquidity package for distribution utilities to Rs 1.25 trillion from Rs 90,000 crore announced in May, according to a source.

The liquidity package announced by Finance Minister Nirmala Sitharaman as part of more than Rs 20 trillion stimulus for Covid-19-hit economy, would be extended for payment of outstanding dues by two months till May 2020.

Initially, the package was for granting loans by Power Finance Corporation and REC Ltd to discoms for payment of their dues till March 2020.

"Ministry of Power has firmed up a proposal to hike the Rs 90,000 crore