PM cautions states against politicization of power, tells them to clear dues owed to discoms – EQ Mag Pro
Prime Minister Narendra Modi has cautioned state governments against politicisation of power, which, he said has led India’s power sector to a deep financial crisis
- Urging state governments to focus on Rashtraneeti more than Rajneeti, Modi urged states to clear all dues that are payable to discoms as soon as possible
- The PM remarked that people will be surprised to know that different states have outstanding dues of more than Rs 1 lakh crore
New Delhi: Inaugurating a bunch of renewable energy (RE) projects on Saturday, Prime Minister Narendra Modi used the opportunity to caution state governments against politicisation of power, which, he said has led India’s power sector to a deep financial crisis. He also made a direct request to state governments to clear dues owed to power distribution companies (discoms) of over Rs 2.5 lakh crore in order to support the power sector. “With the passage of time, a serious disorder has come into our politics. In politics, people should have the courage, to tell the truth, but we see that some states try to avoid it. This strategy may sound like good politics in the short term. But it is like postponing today’s truth, today’s challenges, for tomorrow, for our children, and for our future generations,” the Prime Minister said while delivering the closing remarks for Ujwal Bharat-Power @2047 event virtually.
“This thinking of avoiding solutions to today’s problems and leaving them for the future is not good for the country, he said. This thought process has pushed the power sector in many states into huge problems,” he added.
‘States have not paid subsidies of more than Rs 75,000 cr to discoms’
Urging state governments to focus on Rashtraneeti more than Rajneeti, Modi urged states to clear all dues that are payable to discoms as soon as possible. “Also, honestly consider the reasons that even when the countrymen pay their electricity bills honestly, why do some states have arrears again and again? He said this is not a matter of ‘Rajniti’ (politics) but pertains to ‘Rashtra Niti’ and nation building,” he said.
The Prime Minister said losses in our distribution sector are in double digits. Referring to the developed world, he said that losses are usually around single digit. “This means that we have a lot of wastage of electricity and therefore we have to generate more electricity than we need to meet the demand for electricity. There is a lack of investment in reducing distribution and transmission losses in many states.” said Modi.
The PM remarked that people will be surprised to know that different states have outstanding dues of more than Rs 1 lakh crore. They have to give this money to power generation companies. Power distribution companies are waiting to received dues of more than Rs 60,000 crore rupees from many government departments, and local bodies. He said that these companies are not even able to get the money that has been committed for subsidy on electricity in different states on time and in full. This arrear is also more than Rs 75,000 crore. Those responsible for generation of electricity to its delivery (gencos and discoms), have about Rs 2.5 lakh crore rupees trapped, said the PM.
Source: psuwatch
