Energetica India 89 - May 2020

NEWS Renewable Energy Industry Acknowledges Infu- sion of Rs. 90,000 Crores into Power Discoms The freshly announced infusion of li- quidity worth Rs 90,000 crore to Dis- coms against their receivables has been well acknowledged by the indus- try. These loans are to be given against State guarantees for the exclusive pur- pose of discharging liabilities of Dis- coms to the generation companies. This, due to an unmatched cash flow problem emphasized by demand re- duction has seen Discoms payables to power generation and transmission companies rise to Rs 94,000 crore, ac- cording to the ministry. Prabhajit Kumar Sarkar, Managing Di- rector & CEO - Power Exchange India Limited (PXIL):“The Hon’ble Finance Minister’s announcement of infusing Rs. 90,000 crores into the Discoms of the country is a significant and wel - come news given the perilous situation that entire power sector value chain had entered into due to the COVID 19 pandemic. While a large portion of the Discom payables to generating and transmis- sion companies had piled up over a period prior to COVID 19, yet the pan- demic situation had rapidly heightened the cash flow crisis starting from the consumer right up to the generating companies and affecting all entities in between. It has been proposed that this financial incentive would be linked to specific activities/reforms like Digital payments facility by Discoms for consumers, liq- uidation of outstanding dues of State Governments as well as Discoms’ plan to reduce financial and operational losses. Furthermore, the Rs 90,000 crore loan to be specifically used for discharging liabilities towards Gencos and Gencos in turn passing the bene- fit of rebates to Discoms such that they can be further provided to consumers, is also a welcome proposition.” Rajiv Srivastava, Managing Director and CEO, Indian Energy Exchange Limited: “The most remunerative source of income for DISCOMs from industrial and commercial users has been deeply impacted by the COVID-19 lockdown. The 90,000 crore liquidity injection is a welcome relief for financially stressed DISCOMs. The measures like PFC/ REC loans, rebates and reforms an- nounced by the Central Government will go a long way in creating the much needed fiscal space in the power sec - tor value chain.” Sumant Sinha, CMD, ReNew Pow- er:“The 90,000 cr liquidity infusion into discoms will breathe fresh life into the power sector and protect distribution companies from going bankrupt. This money will help the discoms to repay most of the Rs 92,000 crore outstand - ing payments that they owe to power generators, restarting the virtuous cy- cle of liquidity, higher investments and rapid growth for the power sector. This may also be an opportune time for the government to convince states to expe- dite distribution sector reforms so that distribution companies don’t need a bailout next time and are able to be- come financially viable entities.” Maxson Lewis, Managing Director, Ma- genta Power:”The Finance Minister’s announcement focused towards MSME is the right approach. Making capital available to the MSME sector which is the biggest employer is welcome. The EPF contribution will make sure money will go to people who are working for it. Cash infusion is required at the bottom of the pyramid.” 11 energetica INDIA- May_2020 Indu Shekhar Chaturvedi, the new Sec- retary of the Ministry of New and Re- newable Energy (MNRE), took charge, the ministry said in a press release. The government had appointed Chaturvedi as the new Secretary of the ministry in April. He is a 1987 Batch IAS officer belong - ing to Jharkhand cadre and had suc- ceeded Anand Kumar in the ministry who has been shifted to the Ministry of Culture as its new Secretary. In his earlier role, Chaturvedi was serv- ing as Additional Chief Secretary and Additional Secretary (Climate Change Department) of the Ministry of Climate Change Department, Environment & Forest, Government of Jharkhand. Chaturvedi has worked in the Govern- ment of Jharkhand and Government of India at various positions including field and policy level. He has also worked as Joint Secretary or equivalent in PMO, Department of Economic Affairs, Minis- try of Finance. He has a graduate degree from IIT- Kanpur and holds a postgraduate de- gree in International Development from Harvard University. MNRE Appoints Indu Shekhar Chaturvedi as its New Secretary