The government is preparing to take further steps for cash-strapped power distribution companies to ensure uninterrupted power supply during the ban imposed on Kovid-19. These measures include cheaper working capital and lower fees. A source said that the Ministry of Power is considering a proposal for relief to the power distribution companies during Lockdown.
Power distribution companies are facing a cash crunch due to a decrease in demand from industries and state electricity distribution companies (discoms). In such a situation, the effort of the Central Government is to provide them working capital at low interest rates. Further, the source said, the government may ask central and state power regulators to reduce rates for discoms. However, these measures would require the approval of the Union Cabinet as they would have financial implications.