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Advance coal and freight payments charges exempted for 3 months

In order to avoid any type of electricity supply disruptions in this emergency situation in India, Power Ministry has asked coal and railway ministry to exempt power plants including NTPC from advance coal and freight payments for three months as power generators cited for cash crunch due to non-payment by discoms.

Covid-19 is anticipated to have a foremost impact on India’s power sector with distribution companies stumbling payments to generation companies as states electricity departments experience difficulties in recovering bills from consumers. Moratorium for three months to distribution utilities for payment of dues without any back-to-back package for generators is bound to create a cash strapped situation for both generating and transmission units.