Lok Sabha Question No. 640 (UNSTARRED), answered on 2021-02-04
Subject: Relaxation to Power Sector
Ministry: POWER
Asked by: Pritam Gopinath Munde

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.640 TO BE ANSWERED ON 04.02.2021

## RELAXATION TO POWER SECTOR

640.   DR. PRITAM GOPINATHRAO MUNDE:

Will the Minister of POWER be pleased to state:

- (a) whether the Government has approved one-time relaxation to power sector;
- (b) if so, the details thereof along with the objectives for such relaxation;
- (c) whether  any  assessment  has  been  made  to  find  out  the  details  of  financial stress suffered by power sector due to Covid-19 pandemic;
- (d) if so, the details thereof; and
- (e) the extent to which the relaxation approved by the Government is likely to boost the sector?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI  R.K. SINGH)

- (a) & (b) : Recognizing the liquidity problems in the Power Sector arising out of the outbreak  of  COVID-19  pandemic  and  to  allow  an  undisrupted  power  supply  to consumers,  Government  of  India  announced  a  Liquidity  Infusion  Scheme  as  part  of Atma  Nirbhar  Bharat  Abhiyan  on  13 th   May,  2020.  Under  the  scheme,  Power  Finance Corporation (PFC) Ltd. and REC Ltd. have extended special long-term transition loans at concessional rates to Power Distribution Companies (DISCOMs) against the receivables of the Discoms from the State Government in the form of electricity dues and subsidy not disbursed to clear their outstanding dues towards Central Public Sector Undertaking  (CPSU)  Generation  Companies  (Gencos)  &  Transmission  Companies (Transcos), Independent Power Producers (IPPs) and Renewable Energy (RE) generators, as existing on 30.06.2020.

Further, to enable DISCOMs that do not have adequate headroom available under working capital limits of  25% of last years' revenues, as imposed under Ujwal DISCOM Assurance Yojana (UDAY), or do not have adequate receivables from the State Governments, Government of India has also approved a one-time relaxation to Power Finance Corporation (PFC) Ltd. and REC Ltd. for extending these loans.

Furthermore  for  scheduling  of  power  by  DISCOMs,  the  Government  also relaxed the condition of providing Letter of Credit for the cost of power by reducing it to  50%  from  the  required  100%.  Relief  has  also  been  given  to  DISCOMs  by  reducing Late Payment Surcharge from 18% pa to 12% pa. These measures were specifically put in place for fresh dues arising from 24.03.2020 till 30.06.2020. As part of Atma Nirbhar Bharat, the Ministry of Power has also requested all CPSE Gencos and Transcos; and, subsidiaries/  joint  ventures  of  power  generation  and  transmission  CPSEs  to  consider deferring  capacity  charges  for  power  not  scheduled,  to  be  payable  without  interest after the end of lockdown period in three equal monthly instalments; and, also allow a rebate of 20-25% on fixed charges of power supply billed to DISCOMs and inter-State transmission  charges  levied  by  POWERGRID  Corporation  of  India  Limited  (PGCIL), amounting to almost Rs.2985 crore.

(c) & (d) : As per information available with this Ministry, the State Government dues to  DISCOMs  and  that  of  DISCOMs  to  Central  Public  Sector  Undertaking  (CPSU) Generation  Companies  (Gencos)  &  Transmission  Companies  (Transcos),  Independent Power Producers (IPPs) and Renewable Energy (RE) generators increased by Rs.14,619 crores and Rs. 45,505 crore respectively in the period 31.03.2020 to 30.06.2020.

(e) : So  far,  Loans  of  Rs.1,25,000  crore  have  been  sanctioned  and  Rs.46,074 crore  have  been  released  to  States/DISCOMs  by  REC  and  PFC.  This  has  enabled continuation  of  uninterrupted  power  supply  throughout  the  Covid  period  across  the country. Mitigation of liquidity issues enabled the power sector to cater to highest ever peak demand of 189.64 GW as seen on 30 th  January, 2021.

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