+
REC sanctions Rs 220 bn to help discoms clear their dues
POWER & RENEWABLE ENERGY

REC sanctions Rs 220 bn to help discoms clear their dues

State-owned non-banking finance company REC Ltd has sanctioned Rs 220 billion to power distribution companies (discoms) to clear their outstanding dues. The financial assistance has been provided to discoms of Jharkhand, Rajasthan, Chhattisgarh and Jammu & Kashmir under the government's Late Payment Surcharge and Related Matters Rules 2022 (LPS rules).

The Ministry of Power had brought in the electricity LPS rules 2022 to address mounting dues of the state power utilities, which have now crossed Rs 1.50 trillion, REC, formerly Rural Electrification Corporation Ltd, said in a statement.

Major states such as Rajasthan, Jharkhand, Tamil Nadu, Maharashtra, J&K, Madhya Pradesh and Uttar Pradesh, with pending power purchase dues to the tune of almost Rs 960 billion, are complying with the rules. The distribution licensees of these states will be paying around Rs 26 billion to their electricity suppliers on August 5, 2022.

According to REC, the new rules will be applicable to outstanding dues of generating companies, inter-state transmission licensees, and electricity trading licensees (suppliers).

As per the rules, the total outstanding dues, including late payment surcharge, by a distribution licensee may be cleared in a maximum of 48 equated monthly instalments (EMIs).

REC Ltd, under the Power Ministry, focuses on power sector financing and development across India. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.

See also:
Greenko to build India’s first off-river energy storage project
Centre requests Rs 220 billion from EFC for 900-km Ladakh power link


State-owned non-banking finance company REC Ltd has sanctioned Rs 220 billion to power distribution companies (discoms) to clear their outstanding dues. The financial assistance has been provided to discoms of Jharkhand, Rajasthan, Chhattisgarh and Jammu & Kashmir under the government's Late Payment Surcharge and Related Matters Rules 2022 (LPS rules). The Ministry of Power had brought in the electricity LPS rules 2022 to address mounting dues of the state power utilities, which have now crossed Rs 1.50 trillion, REC, formerly Rural Electrification Corporation Ltd, said in a statement. Major states such as Rajasthan, Jharkhand, Tamil Nadu, Maharashtra, J&K, Madhya Pradesh and Uttar Pradesh, with pending power purchase dues to the tune of almost Rs 960 billion, are complying with the rules. The distribution licensees of these states will be paying around Rs 26 billion to their electricity suppliers on August 5, 2022. According to REC, the new rules will be applicable to outstanding dues of generating companies, inter-state transmission licensees, and electricity trading licensees (suppliers). As per the rules, the total outstanding dues, including late payment surcharge, by a distribution licensee may be cleared in a maximum of 48 equated monthly instalments (EMIs). REC Ltd, under the Power Ministry, focuses on power sector financing and development across India. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities. See also: Greenko to build India’s first off-river energy storage projectCentre requests Rs 220 billion from EFC for 900-km Ladakh power link

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code