Cabinet clears power sector rescue package; Piyush Goyal says ‘Rs 4.3 lakh cr debt accumulated with discoms’

By: |
New Delhi | Updated: November 05, 2015 8:12 PM

Cabinet approved a rescue package for its loss-making electricity utilities on Thursday, Power minister Piyush Goyal said, a move Prime Minister Narendra Modi hopes will increase the supply of power and help spur economic growth.

Piyush GoyalPower Minister Piyush Goyal said after a meeting of the Cabinet that the government had cleared the package, which it has been working on for several months, to ease the financial crunch at state-owned utility companies. (PTI)

Cabinet approved a rescue package for its loss-making electricity utilities on Thursday, Power Minister Piyush Goyal said, a move Prime Minister Narendra Modi hopes will increase the supply of power and help spur economic growth.

Power Minister Piyush Goyal said after a meeting of the cabinet that the government had cleared the package, which it has been working on for several months, to ease the financial crunch at state-owned utility companies.

Government unveiled several measures to save power discoms. Goyal said, “Cabinet clears financial restructuring of debt of power discoms; Rajasthan, UP, Tamil Nadu and Haryana discoms will be the most loss making.”

Goyal further said, “Rs 4.3 lakh crore debt is accumulated with discoms and the capacity to buy additional electricity had diminished. Discoms’ financial position on a steady has decline in the past five years. Government is committed to bring down losses of discoms & is introducing a slew of measures for the same.”

(With Agencies inputs)

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Sitharaman to attend G-20 joint finance, health ministers meet in Rome
2Green hydrogen can boost India’s energy security, decarbonisation of economy
3Small LPG cylinders to be sold via ration shops