CCEA okays `3.03L cr scheme for power discoms

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a five-year-long reform-based result-linked power distribution scheme worth Rs 3.03 lakh crore. Briefing after the CCEA meet here, Power and New & Renewable Energy Minister RK Singh said: "We have done a lot for power distribution reforms. It needs to be strengthened. Today, the Cabinet has approved the new scheme worth Rs 3.03 lakh crore, including Rs 97,000 crore central outlay." He said the funds would be given to power distribution companies (discoms) to strengthen their system. The Reform-Based Result-Linked Power Distribution Scheme was announced in Budget earlier this year. On Monday, Finance Minister Nirmala Sitharaman again announced the scheme as part of stimulus package post second wave of Covid-19, to boost the economy.

The revamped reforms-based result-linked power distribution scheme will provide financial assistance to discoms for infrastructure creation, up-gradation of system, capacity building and process improvement. It provides state-specific intervention in place of 'one size fits all'. For availing this scheme, the states will have to pre-qualify criteria like publication of audited financial reports, upfront liquidation of state government's dues/subsidy to discoms and non-creation of additional regulatory assets.