Major Relief Measures by Power Ministry during Lock Down

On March 28, 2020, the Ministry of Power approved major relief measures to provide power supply 24/7 to all the consumers. In order to achieve this the generation, transmission and distribution operations are to run continuously round the clock

What is the issue?

In India, 70% of power generation is coal based. Therefore, it is important to maintain the continuity of coal supply. Also, due to lock down the consumers have not paid their dues. This has affected the liquidity positions of the distribution companies.

Steps taken

The Ministry of Power has issued directions to the Central Electricity Regulatory commission. According to the guidelines, the commission is to provide moratorium of three months to the Discoms in order to make payments to the generating companies.

What are Discoms?

A Discom is Distribution Company (in India). These are companies that are not generating power by themselves. Rather they buy power from some one else and distribute it to the consumers.

Month: Current Affairs - March, 2020