 "Funds can be transferred to states if discoms default: CEA panel")
A committee of the Central Electricity Authority (CEA) has suggested that an agreement between the Reserve Bank of India (RBI), the state government concerned and participating banks be developed. In case of default by a power distribution company, the RBI could appropriate the dues from the resources to be transferred from the Centre to the state concerned.
In its recommendations to the Union power ministry, the report recommended a trade receivable discounting system for ensuring timely payments to power generating company. It could mean creating a discounting platform similar to what is there for micro, small and medium enterprises.
The
