REC has sanctioned Rs 22,000 crore to power distribution companies (discoms) to clear their outstanding dues. The financial assistance has been provided to the discoms of Jharkhand, Rajasthan, Chhattisgarh, and Jammu & Kashmir under the government's Late Payment Surcharge and Related Matters Rules 2022 (LPS rules).
The Ministry of Power had brought in electricity LPS rules 2022 to address mounting dues of the state power utilities, which have now crossed Rs 1,50,000 crore.
REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects as are sponsored by them.
