Union Power Minister R K Singh on Wednesday said the ministry has asked states to lower tariffs in view of the implementation of pre-payment arrangement for procuring power by distribution companies.
Singh, when asked about a letter given by his ministry to distribution companies asking them to lower prices, said: "We have made an arrangement for pre-payment which means the carrying cost has reduced. Since the carrying cost has reduced, we have told the regulators to cut tariffs. This letter has gone so the tariffs will reduce accordingly. For reducing the tariffs, we have taken other steps as well."
He was speaking on the sidelines of an event organised by Assocham.
Earlier this year, the government has taken steps such as mandatory issuance of letter of credit to generating companies by discoms and single-day payment.
Under single-day payment, discoms have to make payments a day in advance to procure power supply, which will be carrying cost.
Singh, who is also the Minister of State for Skill Development and Entrepreneurship, said around 90 lakh people have been skilled under the government's flagship scheme Pradhan Mantri Kaushal Vikas Yojana, out of which 30-35 lakh have got placement.