CII urges to hold back funds to AP discoms until dues cleared

The Confederation of Indian Industry (CII) has urged the central government to not release more funds to Andhra Pradesh from the Rs 900 billion discom liquidity package until its existing dues are cleared.

The high court had issued a stay order in July 2019 and directed distribution companies to clear the dues owed in December after developers took the state to court. As per CII’s estimates, the state government in January had released Rs 25 billion, which is about 40 per cent of the dues. Another Rs 10 billion is immediately payable to the developers. According to CII, AP’s discoms have made “arbitrary and unexplained” deductions as part of the interim tariff.

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