Interest Rate on Loan to Power Discom Companies

 The Scheme for Financial Restructuring of State Distribution Companies (Discoms) of the Ministry of Power was formulated and approved in October, 2012. Short term liabilities for the purpose of the Scheme means and includes short term loans, working capital loans, payables to power suppliers and other loans, excluding those taken for financing capital expenditure. At a joint meeting held on 21st January, 2015 to review the status of implementation of the Scheme, it was suggested to nodal banks that they may consider providing rebate in the rate of interest for prompt repayment of dues by Discoms for their high interest bearing loans.

 This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.