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Govt to focus on discoms for next 3-4 years to achieve goal of 24X7 power for all

22 Jan 2021 Evaluate

The additional secretary in the Ministry of Power Ashish Upadhyaya has said that the major focus of the central government will be on electricity distribution utilities or discoms for the next three-four years, which are mostly state-run and cash-strapped due to losses, to achieve the goal of 24X7 power for all.

There is stress in the power sector due to the inability of discoms to make timely payments for supply of power by gencos (power generating firms), which affects the entire value chain. Talking about the continuous losses of discoms, he said there is a gap between the actual rate of supply of power and the cost recovered from consumers.

According to power ministry data, discoms' total outstanding dues stood at over Rs 1.42 lakh crore as of November 2020. Last year, the government announced a Rs 90,000 crore liquidity infusion scheme for discoms which was later expanded to Rs 1.2 lakh crore. The UDAY scheme was launched in November 2015 under which the discoms' financial performance was to be turned around in three years.

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