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Reduced carrying cost will further reduce tariff

Government is in implementation of pre-payment arrangement for procuring power by distribution companies where carrying cost has reduced. The government has also taken steps such as mandatory issuance of letter of credit to generating companies by discoms and single-day payment, where discoms have to make payments a day in advance to procure power supply, which will be carrying cost.

This would further reduce tariff and a pass through to consumers will benefit end consumers with reduced tariff.