New Delhi: The power ministry has advised all power generating companies and transmission companies to charge late payment surcharge from distribution utilities at a rate not exceeding 12% per annum for all payments made under the liquidity infusion scheme under Atmanirbhar Bharat . The move is aimed at easing the financial burden on power distribution utilities, an official statement said.“In general, the applicable rate of Late Payment Surcharges (LPS) is quite high despite the fact that interest rates in the country have softened over the last few years. The one-time relaxation will enable states like Tamil Nadu, Odisha, Bihar and Jammu and Kashmir to avail about Rs 40,000 crore loans under the Centre’s liquidity injection package for power sector.The liquidity infusion package was launched by the Centre under Atma Nirbhar Bharat scheme. Sources said PFC and REC have sanctioned Rs 68,000 crore loans to various discoms under the scheme. Of this about Rs 23,000 crore have been disbursed.

Source: Economic Times August 22, 2020 09:29 UTC