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.