New debt restructuring scheme for distribution utilities on anvil

New Delhi, Sep 16 (PTI) A new scheme for debt restructuring of distribution utilities was discussed at the 5th meeting of the Group of Ministers chaired by Union Minister of Power Mamohar Lal.

"The Group of Ministers (GoM) reiterated their commitment to take necessary measures for improving the financial viability of distribution utilities," the Ministry of Power said in a statement.

The key points of discussion included the role that the state governments and the regulators should play for ensuring cost reflective tariff, and for ensuring timely payment of subsidies and government department dues.

The deliberations were also held for drafting the broad contours of the new scheme to be proposed by GoM for debt restructuring of distribution utilities.

Besides, expediting smart metering works, increasing the use of data analytics to improve power purchase optimisation and demand forecasting, etc were discussed in the meeting.

In his address, Lal said that collaborative efforts by central government, state governments and regulatory commissions are required to implement necessary reforms that ensure the viability of the power sector.

He emphasised for early installation of prepaid smart meters in all government establishments.

Power Secretary Pankaj Agarwal said there is need for taking reforms measures to restore the financial viability of distribution utilities and also simultaneously ensuring that these reforms are so structured that the improvements made as a result are irreversible and the situation of debt trap doesn’t arise again.

He mentioned that the GoM has been constituted for this purpose and aims to identify requisite reform measures. PTI ABI DRR