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Power sector seeks more investments in power segment

FDI in the power sector can come in only if the regulatory regime is predictable and consistent. As stable regulatory and political front would place all assets to be productive. Current situation in the power segment has worsened, in September, total overdue amount on power distribution companies was estimated to be Rs 52,408 crore against which was not cleared even after 60 days of grace period offered by generators. Views are that without smart metering, India’s power sector will remain in financial stress. Unless 100% smart metering is completed, financial management of the discoms is likely to remain under stress In order to give relief to power generation companies, the Centre has enforced a payment security mechanism where discoms are required to open letters of credit (LoC) for getting power supply. But ground realities of this government move is still to come.