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Opinion | Electricity distribution business needs bold reforms

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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.

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