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Discoms may face stricter compliance on loan taken by PFC and REC

Ailing financial health of dicoms and their reducing capacities to pay long standing dues has forewarned lending agencies like PFC and REC, where government is preparing to lend discoms at sterner terms and conditions. Discoms may have to comply on various improvement parameters and these agencies have raised a bar to issue loans to dicoms only if they comply with stricter norms like reduction of AT&C losses, improvement of billing and collection efficiency, implementation of prepaid metering system and timely release of payments. However Discoms are less keen to pay their outstanding bills. Centre is also working on a Rs 2.8 lakh crore new power sector scheme to improve electricity distribution in states with implementation of smart and prepaid metering, aerial and underground cabling and other infrastructure and its bearing on sector is yet to be administered.