₹1,075 crore to electricity distribution companies (discoms) and state electricity boards.As part of the economic stimulus package, the government last month had asked Power Grid to consider offering a rebate of 20-25% on interstate transmission charges for the period of the lockdown.Shutdown of industries and commercial establishments adversely impacted cash flows of discoms, necessitating relief measures by the government.
According to Motilal Oswal Financial Services Ltd, the rebate pertains to April and May when major parts of the country were placed under a lockdown.A rebate of ₹1,075 crore will be a 10% hit to annual profit, similar to what the Street had anticipated.