REC sanctions Rs 220 bn to help discoms clear their dues

10 Aug 2022 CW Team

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.

Resources

04 Jun 2026

ULCCS Showcases Cooperative Model at UN Symposium

Uralungal Labour Contract Co-operative Society (ULCCS) showcased its community-led development model at the United Nations Headquarters in New York, where it participated as a panellist at the International Symposium on Cooperative Financial Institutions held on 28–29 May 2026.Jointly organised by the United Nations Department of Economic and Social Affairs (UN DESA), the International Cooperative Banking Association (ICBA), and the International Cooperative Alliance (ICA), the symposium was held under the theme ‘Fuelling Inclusive and Equitable Growth’ and brought together policymakers,..

Delhi Airport to Finalise 20-Year Master Plan

Delhi International Airport Ltd (DIAL) is finalising a 20-year master plan to guide long term infrastructure and operational development at Indira Gandhi International Airport, an official said. The operator expects the plan to reflect changes in the airline industry, shifts in the competitive landscape and evolving infrastructure requirements across terminals, airside and support services. The official said the document is likely to be ready in the next two to two-and-a-half months as the operator moves through planning stages. The plan will be prepared after consultations with airport users ..

Aadhar Housing Finance Targets Rs 500 bn AUM By FY29

Aadhar Housing Finance has set a target to raise its asset under management to Rs 500 billion (bn) by the end of FY29, aiming to achieve this over the next three financial years through an 18-20 per cent loan growth trajectory. The firm focuses on the low-income segment with a ticket size of less than Rs 1.5 million (mn) and has relied on that segment to drive expansion. The company closed FY26 with an AUM of Rs 305.71 bn, reflecting the expansion in recent years, and it reported a net profit rise of 22 per cent to Rs 11.08 bn. Management indicated that gross non-performing assets stood at 1.0..