Short-term loans in the works for power discoms

Short-term loans in the works for power discoms

The Centre is working to offer quick short-term loans to power distribution companies as their accumulated electricity bills payable to generating houses are nearing ₹1 lakh crore.

A senior government official said state-owned Rural Electrification Corp (

) is considering lending short-term loans for bill payment to private as well as state-owned power distribution companies.


“The loans will enable the distribution companies to clear their dues to power plants and transmission charges in time,” the official said. He said the loans will be within the working capital limits under the other central schemes including Ujwal Discom Assurance Yojana (Uday) and will also be offered based on state government guarantees.

Power distribution firms of states like Andhra Pradesh have recently sought financial support from the central government as high spot electricity prices shot up due to a crisis triggered by low coal stocks at power stations.

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