No loan to DISCOMs facing losses above 15%: Power Minister
Published: Mar 09, 2018
By TIOLCORPLAWS News Service
NEW DELHI, MAR 9, 2018: UNION Minister of State (IC) Power and New & Renewable Energy R K Singh took a review meeting of the Rural Electrification Corporation and Power Finance Corporation on March 07, 2018. The Minister directed that DISCOMs which are making heavy losses (above 15 per cent) will not be granted any loans for capital expenditure or non-capital expenditure until and unless they draw up a road map for reducing the losses over a definite time frame (not more than 2 years), and they are able to show that they are taking action in accordance with the road map. This will be vetted by the Ministry of Power and only then will the grant of loan be considered for such DISCOMs. The Minister also directed the two institutions that before granting of loan either for capital expenditure or for non-capital expenditure, the adherence to prudential norms must be carefully observed.