Government Constitutes CEA Led Panel to Explore Prepaid Payments by DISCOMS to Power Generators

  • The government has constituted a committee led by the Central Electricity Authority (CEA) to look into problems of delayed prepaid payments by state electricity distribution companies to power plants.
  • The committee will comprise of Chairmen of distribution companies of Tamil Nadu and Maharashtra, representatives from Union power ministry and power associations.
  • This is in recommendations of the Cabinet Secretary P K Sinha-headed High Level Empowered Committee to address stressed power sector.
  • The committee will study working capital cycles of power distribution companies and generation companies and identify gaps contributing to stress in the sector.
  • It will also study the regulations with respect to payment mechanisms and transactions across power sector value chain and suggest a mechanism for the prepaid system of transactions.

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