Proposal to resolve discom issue very soon: Goyal

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The Power Ministry has said that a proposal to provide permanent solution to issues of debt-ridden power distribution companies will be put before the Union Cabinet very soon, media reported.

As per reports, hit by subsidised tariffs, state electricity discoms are facing cash crunch and are incurring annual losses of about Rs 60,000 crore. This is also affecting public sector banks as their bad loans are rising.

Commenting on the issue, Power Minister Piyush Goyal told the media, "Very soon I can say at this juncture. The discussion with all major states facing problems are almost complete. I will meet Madhya Pradesh Chief Minister tomorrow in this regard."

"I can assure you that every bank has hailed the innovative way in which a permanent resolution to the discom problems has been worked out. Banks are delighted at the entire proposal," he added.

The Power Minister has had several rounds of meetings with different states including Tamil Nadu, Uttar Pradesh, and bankers to sort out the issues relating to increasing debt affecting these discoms.

Story first published: Thursday, October 15, 2015, 12:20 [IST]
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