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Discoms are facing major bottleneck in collection of payment from its consumers. This has impeded their capability to make timely payments to discoms and transcos. Mooting this crisis situation Government has come forward and plans to offer loans to Discoms to help them in clearing their oustanding dues. PFC and REC are working proactively to assist government in raising loan for the discoms, where financiers will pay to gencos and transcos on behalf of Discoms and it shall be treated as debt on books of dicsoms. Government has further made clear that this is not a bailout program to pay all dues, but an assistance would be made only to ease out liquidity for operations and keep it going further for 2-3 months.  Total outstanding dues on Discoms stands as ₹92,000 crore.

Healthy liquidity position would assist in easing cash flow to generating and transmission unit to fund their working capital and prevent a situation where genncos and transcos do not have money, payments to coal companies, freight charges, employees and lenders. Bunged operation due to liquidity crunch may further deepen the chances of power blackout across cities.