MoP planning to ease borrowing cap in relief for discoms

The Ministry of Power (MoP) is reportedly planning to request the cabinet to consider raising the borrowing limits of discoms for enabling their qualification for the Rs 900 billion reform-linked loan package announced earlier as part of the stimulus package.

The circulated draft cabinet note seeks a one-time exemption for the discoms from the conditions laid out for accessing working capital under the Ujwal Discom Assurance Yojana (UDAY). The draft cabinet note has been circulated for inter-ministerial consultations. The Union power ministry had also earlier highlighted to the 15th Finance Commission the need for a recalibration of borrowing limits for states under the Fiscal Responsibility and Budget Management Act.

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