Page-6 of Current Affairs - May, 2022

Power Ministry Scheme to liquidate DISCOM Dues

The Ministry of Power recently announced that it is working on a scheme to liquidate the dues of power distribution companies (discoms).

What are the key details of the scheme?

The proposed scheme aims to provide relief to the power sector ecosystem which is reeling under the pressure of non-payment of dues. It will provide liquidity to the power generating companies and the discoms can pay their dues in easy installments (up to 48 installments). One-time relaxation will be given to the power distribution companies by freezing their outstanding dues and the late payment surcharge (LPSC) will also be waived off. This will save Rs 19,833 crore on late payment surcharge over the next 12 to 48 months. States like Tamil Nadu and Maharashtra which have large outstanding dues will be benefitted the most from this scheme.

What are the issues faced by the power sector?

  • High technical and commercial losses
  • Low efficiency
  • Low and uncertain revenue recovery from consumers
  • Political pressure to provide free or cheap power to consumers

The biggest issue is that discoms accumulated over Rs 5 lakh crore losses. Also, discoms owe power generating companies (gencos) over Rs 1.1 lakh crore. This payment crisis hurts the entire value chain in the power sector and gives rise to a power crisis.

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Current Affairs- Today’s Headlines: May 29, 2022

Here are Today’s News Headlines by GK Today for May 29, 2022.

INDIA

– 17th Mumbai International Film Festival (MIFF) from May 29 to June 4; Bangladesh made ‘Country of Focus’

– Gujarat: PM inaugurates Nano Urea Liquid Plant constructed at IFFCO, Kalol

– 50 per cent of rural households have access to tap water connections: Jal Shakti Ministry

– INS Gomati decommissioned at Naval Dockyard in Mumbai after 34 years of service

– Tamil Nadu: Vice President Naidu unveils late CM M. Karunanidhi’s 16-ft tall statue in Chennai

ECONOMY & CORPORATE

– MeitY (Ministry of Electronics and IT) issues draft norms to mobilise non-personal citizen data with govt

WORLD

– Russia and China block UNSC’s statement on Myanmar humanitarian crisis

– Russia says eastern Ukraine town of Lyman is under its full control

– Russia carries out test of Zircon hypersonic cruise missile

– Iran confirms seizure of 2 Greek oil tankers in Persian Gulf

– Menstrual Hygiene Day observed on May 28

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