Measures for Discoms announced by Finance Minister
14 May 2020
2 Min Read
Editorial Team
Photo: For representational purpose
Finance Minister Nirmala Sitharaman announced several measures yesterday, including those for Discoms, construction contractors, the MSME sector, the real estate sector, among others.
In this article, we take a look at the measures announced for Discoms. For Discoms, a onetime emergency liquidity infusion has been announced 鈥� Rs 90,000 crore to all Discoms against all receivables.
Says Rajiv Srivastava, Managing Director and CEO, Indian Energy Exchange, 鈥淭he most remunerative source of income for Discoms from industrial and commercial users has been deeply impacted by the COVID-19 lockdown. The 90,000 crore liquidity injection is a welcome relief for financially stressed Discoms. The measures like PFC/REC loans, rebates and reforms announced by the Central Government will go a long way in creating the much needed fiscal space in the power sector value chain.鈥�
He tells us that Indian Energy Exchange has been at the forefront to support Discoms in their dual role of ensuring 24 x 7 uninterrupted power availability as well as enabling optimisation that improves financial liquidity during the crisis. 鈥淭hey have met increased domestic demand as well as demand from the stressed healthcare and utilities sector and replaced costlier generation with low cost power available on the Exchange, thereby reducing power procurement costs leading to significant savings.鈥�
According to Sandeep Upadhyay, Managing Director-Infrastructure Advisory, Centrum Capital, 鈥淔resh injection of Rs 90,000 crore into Discoms would certainly lead to financially de-stress them and in turn improve the liquidity for power generation companies. This was long due and hopefully would lead to end-consumers getting benefited in terms of cheaper tariffs, however, that is likely to happen on a medium to long term.鈥� He adds that going forward, one needs to ensure that developers and the investors get a clear understanding and the precise details of the upcoming projects to start preparing for it sooner than later.
Photo: For representational purpose
Finance Minister Nirmala Sitharaman announced several measures yesterday, including those for Discoms, construction contractors, the MSME sector, the real estate sector, among others.
In this article, we take a look at the measures announced for Discoms. For Discoms, a onetime emergency liquidity infusion has been announced 鈥� Rs 90,000 crore to all Discoms against all receivables.
Says Rajiv Srivastava, Managing Director and CEO, Indian Energy Exchange, 鈥淭he most remunerative source of income for Discoms from industrial and commercial users has been deeply impacted by the COVID-19 lockdown. The 90,000 crore liquidity injection is a welcome relief for financially stressed Discoms. The measures like PFC/REC loans, rebates and reforms announced by the Central Government will go a long way in creating the much needed fiscal space in the power sector value chain.鈥�
He tells us that Indian Energy Exchange has been at the forefront to support Discoms in their dual role of ensuring 24 x 7 uninterrupted power availability as well as enabling optimisation that improves financial liquidity during the crisis. 鈥淭hey have met increased domestic demand as well as demand from the stressed healthcare and utilities sector and replaced costlier generation with low cost power available on the Exchange, thereby reducing power procurement costs leading to significant savings.鈥�
According to Sandeep Upadhyay, Managing Director-Infrastructure Advisory, Centrum Capital, 鈥淔resh injection of Rs 90,000 crore into Discoms would certainly lead to financially de-stress them and in turn improve the liquidity for power generation companies. This was long due and hopefully would lead to end-consumers getting benefited in terms of cheaper tariffs, however, that is likely to happen on a medium to long term.鈥� He adds that going forward, one needs to ensure that developers and the investors get a clear understanding and the precise details of the upcoming projects to start preparing for it sooner than later.
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
