Stop granting loans to DISCOMs: Power minister to REC, PFC

Many power distribution companies incurring heavy transmission and distribution losses

GN Bureau | March 9, 2018


#Rural Electrification Corporation   #REC   #PSU  

Minister of power and new & renewable energy R K Singh has asked Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) to strictly comply with the norms before allocating loans to DISCOMs either for capex or for non-capex.

Singh took a review meeting of the two financing arms of the power ministry.

He noted that many power distribution companies are incurring heavy transmission and distribution (T&D) losses and it may be difficult for them to repay the loans.

Singh directed that DISCOMs which are making heavy losses (above 15 per cent) will not be granted any loans for capital expenditure or non-capital expenditure until they come up with a road map of reducing the losses within stipulated time frame of not more than 2 years.

This will be vetted by the ministry and only then will the grant of loan be considered for such DISCOMs.

Comments

 

Other News

The Xi-Trump summit: The unending rivalry

Diplomacy is akin to an art, wherein the summitry, conflict resolution and negotiations form apt constituents of the entire context of deal making and “playing for keeps” in the international arena. The Xi-Trump summit in Washington last week, in which the American president broke all conside

“Indians, yet treated like outsiders”

Moving to Delhi-NCR for education can be an exciting experience for students from Northeast India. It gives us a chance to meet new people, experience a different culture and become more independent. But living away from home also comes with challenges that people who have not experienced them may not al

Import duty on major edible oils cut

The government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices, providing relief to consumers and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.  

From pyramid to platform: BRICS agenda for Global South

In his opening address at the 18th BRICS Summit in New Delhi on September 12, prime minister Narendra Modi did something India`s diplomacy has been building towards for three years: he moved the ‘Voice of the Global South’ from a slogan to a work plan. Addressing the leaders, he argued that t

How to realise the full transformative potential of PM-JAY

The Pradhan Mantri Jan Arogya Yojana (PM-JAY), a welfare scheme which covers approximately 45 crore beneficiaries across India, provides cashless health cover of Rs. 5 lakh per family per year. It is the largest health insurance scheme which helped crores of poor families by reducing out-of-pocket expend

The missing men in India`s family planning story

Every pregnancy requires two people. Yet India`s family planning programme continues to ask only one of them to bear almost all of its medical consequences. The newly released National Family Health Survey-6 (2023-24) confirms just how entrenched this asymmetry remains: 36.5% of currently married women a

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter