February 01, 2021
Will assist in infrastructure creation, provide pre-paid smart-metering and enable systems upgrade
In yet another attempt to save loss-making electricity distribution companies (discoms), the Budget has provided for a reforms-based and result-linked scheme, with an outlay of about ₹3.06-lakh crore over five years.
It will assist discoms in infrastructure creation, including providing prepaid smart metering, feeder separation, and upgrading systems, Finance Minister Nirmala Sitharaman.
Reacting to the announcement, “The distribution segment has been the weakest link in the electrical system and providing assistance for infrastructure creation while tying the support to financial improvements is vital for sustainability,” Association of Power Producers (APP) said in a statement.