Discom debt rejig face hurdles; Punjab seeks upfront payment
Putting a spanner in the Power Ministry’s ambitious debt rejig plan for discoms, Punjab has sought upfront payment of incentives before taking over 50 per cent loan liabilities of state power distribution company.
Faced with mounting debts of power distribution companies (discoms), which is over Rs 2.46 lakh crore, Power Ministry in October last year came up with financial restructuring plan.
Taking over of 50 per cent short term liabilities of discoms by respective state government is a major proposal in the Central government plan.
“Punjab government has written to the Power Ministry seeking some incentives upfront with regard to the proposed debt restructuring package for discoms,” Power Secretary P Uma Shankar told PTI.
Punjab State Electricity Board is the discom in that state.