India's discoms to receive $12b government stimulus

It will be infused in two equal installments.

India’s distribution companies (discoms) will receive $12.03b (₹900b) as part of the government’s stimulus package to help the economy recover from the pandemic, Finance Minister Nirmala Sitaraman said according to a Mercom India report.

These funds are intended to help discoms out of this unprecedented situation as their revenues have dropped drastically, Sitaraman noted, adding that loans would be given against state guarantees solely for clearing liabilities to power generating companies.

This will be infused through the Power Finance Corporation (PFC) and REC Ltd in two equal installments. Central public sector power generation companies have been ordered to give rebates to discoms, to be passed on to industrial consumers.

At the end of March 2020, discoms owed renewable energy generators $914.5m (₹68.37b) in outstanding payments, according to data from the Ministry of Power (MoP). This included dues of $4.2m (₹311m) under dispute.