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Reducing Fixed charges to keep Discoms working

Discoms revenue collection has fallen drastically by 80%, amount collected is not enough even to fund salaries of employs and chances of paying to generators is minimal. Monitoring this situation government has halved fixed charges burden on Discoms by reducing return on equity so as to prevent blackout in country

Generators agitate that such reduction would hurt lenders and project developers sentiments toward the project, as they invested in project to get fixed the return on equity at 15.5%. Nevertheless, the situation in country due to COVID is temporary and such reduction is also temporary to make Discoms running. Once the situation improves return expected by domestic as well as foreign investors will soon resume.