PM criticizes state governments for their dues to power distribution companies

1 Aug 2022 , 08:34 AM

State governments were criticised by Prime Minister Narendra Modi for failing to pay their debts to power distribution firms (discoms), which limited the latter’s capacity to invest in new infrastructure. He urged them to make quick payments and reconsider the politics of free electricity.

During the closing ceremony of “Ujjwal Bharat, Ujjwal Bhavishya- Electricity 2047,” Prime Minister Modi stated that power distribution firms are owed Rs1 lakh crore. States owe discoms Rs60,000 crore and another Rs75,000 crore for the various subsidies they promised to their residents.

It will give DISCOMs financial support to modernise and enhance their distribution infrastructure, with an emphasis on enhancing the consistency and caliber of supply to final customers. The plan also intends to close the average cost of supply-average revenue realized (ACS-ARR) gap and lower aggregate technical and commercial (AT&C) losses to levels comparable to India (12—15%) and zero, respectively, by 2024—2025.

Speaking at the occasion, the PM predicted that the energy sector will be crucial to India’s capacity to increase “Ease of Doing Business” and “Ease of Living” over the next 25 years and will significantly speed up the country’s growth.

He also introduced green energy initiatives on July 30 to help India achieve its objectives for energy security. The PM laid the cornerstone for the Kawas Green Hydrogen Blending with Natural Gas Project in Gujarat, the 735-megawatt Nokh Solar Project in Rajasthan, and a green hydrogen transportation project in Leh.