Electricity distribution companies are facing huge challenges of maintaining round a-clock electricity supply without fail to all consumers in the ongoing covid-19 crisis.
To overcome liquidity and cash flow issues, government of India has announced ₹90,000 crore financial packages for distribution companies (discoms).
Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) will infuse the liquidity by raising an amount of about ₹90,000 crore from the market against the receivables of discoms.
This one-time liquidity infusion will be used to pay the central public sector power generation companies, transmission companies, independent power producers and renewable energy generators.