Govt Approves Rs 3.03-lakh Crore Scheme for Power Discoms; know extra
Govt Approves Rs 3.03-lakh Crore Scheme that has been within the works for 5 years for Power Discoms in an effort to assist bolster their infrastructure.
- News18
- Last Updated:June 30, 2021, 17:07 IST
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The Cabinet Committee on Economic Affairs (CCEA) on June 30, accredited a reform-based result-linked energy distribution scheme value Rs 3.03 lakh crore that has been within the works for 5 years. The scheme has been accredited with an inclusive Rs 97,000 crore central outlay.
The Reform-Based Result-Linked Power Distribution Scheme which was introduced in Budget earlier this 12 months by Finance Minister Nirmala Sitharaman was delivered to the desk once more on Monday as a part of the stimulus package deal to assist within the efforts in direction of the post-second wave of COVID-19 scenario, to spice up the economic system.
Power and New & Renewable Energy Minister R Ok Singh acknowledged that these funds can be given to energy distribution corporations (DISCOMs) to strengthen their system and infrastructure.
The scheme is for use to enhance the operational capabilities and make the entire course of extra financially secure for all DISCOMs and energy departments, excluding these within the personal sector. It goals to attain this by offering result-linked monetary help to DISCOMs based mostly on them assembly pre-qualifying standards in addition to the basic-minimum benchmarks set for the scheme.
This scheme will carry an outlay of Rs 3,03 lakh crore with an approximate GBS from the Central Government of Rs 97,631 crore. It might be made out there efficient until the 12 months 2025-2026. The Power Finance Corporation (PFC) and Rural Electrification Corporation Ltd (REC) have been made the nodal businesses for this scheme and can oversee the facilitation and execution of it.
The essential goal of the scheme is to cut back Aggregate Technical & Commercial (AT&C) losses to pan-India ranges of 12-15% by 2024-2025; scale back the Average Cost of Supply (ACS) and Average Revenue Realization (ARR) hole to zero by 2024-2025; develop Institutional capabilities of DISCOMs and enhance the standard, reliability, and affordability of energy provide to customers by by way of a financially sustainable and operationally environment friendly Distribution Sector.
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