PM Modi urges states to clear power utility dues of Rs 2.5 lakh Cr

Prime Minister Narendra Modi attends the inaugural session of the First All India District Legal S
Prime Minister Narendra Modi attends the inaugural session of the First All India District Legal SANI

New Delhi: Prime Minister Narendra Modi Saturday asked the states to clear dues of power utilities estimated to be around Rs 2.5 lakh crore to strengthen the energy sector which has to play a big role in accelerating the growth.

“The energy and power sectors have a huge role to play in accelerating India's progress in the next 25 years,” he said addressing the closing function of the 'Ujjwal

Bharat Ujjwal Bhavishya Power @2047' event virtually. “The strength of the energy sector is also important for Ease of Doing Business and is equally important for Ease of Living.”

Modi highlighted the financial problems being faced by the power utilities and asked the states to clear the dues as soon as possible.

“It is not a matter of 'Rajniti' (politics) but pertains to 'Rashtra Niti' and nation building,” he said.

The PM regretted that about Rs 2.5 lakh crore amount of companies responsible for activities ranging from the generation of electricity to door-to-door delivery were “trapped”.

He said that different states had outstanding dues of more than Rs 1 lakh crore towards power utilities.

“They have to give this money to power generation companies,” he said. “Many government departments and local bodies owe more than Rs 60,000 crore to power distribution companies.”

Modi said that power companies were not able to get even the money that had been committed for subsidy on electricity in different states on time and in full.

“The arrear works out to be more than Rs 75,000 crore,” he said.

The PM said losses in the power distribution sector were in double digits, whereas in the developed countries these were in single digits.

He said that in the last eight years, about 1,70,000 MW of electricity generation capacity had been added in the country.

“One Nation One Power Grid has become the strength of the country today,” Modi said. “About 1,70,000 circuit kilometre transmission lines have been laid to connect the entire country and by giving 3 crore connections under the Saubhagya Scheme, the country is also nearing the saturation goal.”

He said the energy and power sectors had a huge role to play in accelerating India's progress in the next 25 years.

“The strength of the energy sector is also important for ease of doing business and is equally important for ease of living,” the PM said. “The projects launched on Saturday are significant steps in the direction of green energy and energy security for the county.”

He dedicated and laid the foundation stone of various green energy projects of NTPC worth over Rs 5200 crore.

Modi inaugurated the 100 MW Ramagundam Floating Solar Project in Telangana and the 92 MW Kayamkulam Floating Solar Project in Kerala.

He laid the foundation stone of the 735 MW Nokh Solar Project in Rajasthan, the Green Hydrogen Mobility Project in Leh, and Kawas Green Hydrogen Blending with Natural Gas project in Gujarat.

The PM also launched a national solar rooftop portal, which would enable online tracking of the process of installation of rooftop solar plants, starting from registering the applications to release of subsidies in residential consumers' bank accounts after installation and inspection of the plant.

He also launched the power sector's 'Revamped Distribution Sector Scheme', aimed at improving the operational efficiencies and financial sustainability of the DISCOMs and power departments.

With an outlay of over Rs 3 lakh crore over five years (2021-22 to 2025-26), the scheme aims to provide financial assistance to discoms for modernisation and strengthening of distribution infrastructure, focussing on the improvement of the reliability and quality of supply to end consumers.

'Ujjwal Bharat Ujjwal Bhavishya Power @2047' was organised as part of the ongoing 'Azadi Ka Amrit Mahotsav'.

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