Raj Kumar Singh, Minister of State (MoS) Independent Charge for Ministry of Power, has asked all distribution companies (discoms) to provide unconditional Letter of Credit (LC) for power purchases.
"This decision has been taken after it was brought to the notice of Power Ministry that some discoms have opened conditional LC which requires approval from concerned discoms for encashment etc," a press release by the PIB read.
The release added that the Regional Load Despatch Centres (RLDCs) have been asked to issue directions to select State Load Despatch Centres (SLDCs) for meeting the orders issued by the Ministry of Power on June 28, in the last year in relation with LCs and its amendments.
"RLDCs have been asked to issue suitable directions to respective SLDCs for compliance of Power Ministry's order on LCs dated June 28, 2018, and its subsequent amendments. SLDCs are requested to submit a status report on a daily basis on the implementation of the aforementioned order," the release added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)