DBT to be provided through consumer accounts with discoms

The government is reportedly working towards initiating direct benefit transfer (DBT) in the power sector by making payment of subsidy into the accounts of consumers maintained by discoms and not directly into their bank accounts.

Reportedly, the amendments to the Electricity Act, 2003, (Electricity Amendment Bill, 2020) which is with the law ministry for vetting before being introduced in Parliament, has re-modelled DBT structure. As per the revised structure, states will be asked to subsidise tariff for certain identified consumers by transferring the subsidy amount in advance into the electricity accounts of consumers maintained by discoms.

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