Energy sector players cheer stimulus, says steps towards self-reliance

Energy sector players on Wednesday hailed government's move to infuse Rs 90,000 crore liquidity into power distribution companies (discoms), saying stimulus will brea fresh life into power sector.  y said that overall this Rs 20 lakh crore stimulus anunced by Prime Minister Narendra Modi will revive COVID-19 hit ecomy, adding that re was a need to lay special focus on domestic manufacturing and that is what this pack will do. Welcoming anuncement, Vikram Solar CEO Saibaba Vutukuri said "path-breaking initiative" aims to make India self-reliant and reduce import dependency on imports for solar modules and its components.

Energy sector players cheer stimulus

"It is (pack) component for progress, growth and positive change. need for reviving domestic manufacturing is w more than ever, as world's gaze shifts away from China," he said.

Prime Minister on Tuesday anunced a massive new financial incentive on top of previously anunced packs for a combined stimulus of Rs 20 lakh crore. Sharing details of pack on Wednesday, Finance Minister Nirmala Sitharaman anunced Rs 90,000 crore liquidity infusion into cash-strapped discoms, facing demand slump due to lockdown to contain COVID-19. ReNew Power CMD Sumant Sinha said 90,000 crore liquidity infusion into discoms will brea a fresh life into power sector and protect distribution companies from going bankrupt.

This money will help discoms to repay most of Rs 92,000 crore outstanding payments that y owe to power generators, restarting virtuous cycle of liquidity, higher investments and rapid growth for power sector, he added. Suntuity Renewable Energy India Director Imaan Javan said Indian MSMEs always had to face unfair competition from foreign companies.  " government's move will give opportunities to all Indian manufacturers. Renewable energy projects having PPAs (power purchase agreements) with discoms will also benefit from move," he said.

Im credits: PTI