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CCEA approves setting up of National Electricity Fund

Posted on Dec 14, 06:07AM | IANS

The union cabinet has approved the setting up of a National Electricity Fund to provide interest subsidy amounting to Rs.8,466 crore for 14 years to electricity distribution projects, Minister of State for Power Jyotiraditya Scindia said Thursday.

The minister informed parliament that the Cabinet Committee on Economic Affairs has approved the setting up of a "National Electricity Fund (Interest Subsidy Scheme) to provide interest subsidy aggregating to Rs.8,466 crore on loan disbursement amounting to Rs.25,000 crore to the state power utilities both in public and private sector, to improve the distribution network".

The scheme will become operational within six to 12 months.

The fund is being set up to provide interest subsidy on loans to be disbursed to the distribution companies (DISCOMS)to improve the distribution network for areas not covered by the government's Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) and Restructured Accelerated Power Development and Reforms Programme (R-APDRP) project areas.