Special Long Term Transition Loan to Discoms for COVID19
- Power distribution companies (discoms) to avail of benefit of 90,000 crores package announced by Central Govt as a part of 20 lakhs crores relief package.
- Purpose: the financial assistance is meant to help the discoms to clear their dues to power producers, both belonging to the Central public sector undertakings (PSUs) and the Private sector, and transmission companies.
- The loan will have a tenure of up to 10 years, including moratorium of not more than 3 years
- If a State fails to pay the power bill and subsidy within 60 days of the due date, it will be charged with an additional interest of 0.25% on the outstanding loan amount.