- 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.
