India’s power ministry announced on Saturday state-run firms will supply electricity to distribution companies including ones with large payments due, to ensure supply to people whose ability to pay bills has been hit by pandemic.
The ministry has also directed the central electricity regulator to provide three months to distribution companies to make payments to power producers and halved the security deposit distribution companies (DISCOMs) pay generators.
Prime Minister Narendra Modi on Tuesday imposed a 21-day nationwide lockdown starting on Wednesday to stop the spread of the coronavirus, and urged people not to step out of their homes except to buy food and other necessities.
“Due to the lockdown, consumers are unable to pay their dues to the DISCOMs. This has affected the liquidity position of the DISCOMs thereby impairing their ability to pay generating and transmission companies,” the ministry said in a statement.
