India will not import power equipment from China: R K Singh amid standoff

Power Minister R K Singh on Friday said that India will not import power equipment from China, commenting as border standoff with the Communist nation continues.
During a virtual press conference with state counterparts, he also asserted that the equipment import from China and Pakistan would not be permitted especially on the basis of inspection.
He further said state discoms should not give orders for supply of equipment to Chinese firms.
"We manufacture everything here. India imported Rs 71,000 crore worth power equipment including Rs 21,000 crore from China," Singh said in the state energy ministers conference chaired by him this morning in his opening remarks.
He said: "This (huge import of power equipment) is something we cannot tolerate that a country will transgress into our territory....we will not take anything from China and Pakistan."
He further said, "we will not give permission for import from Prior Reference countries. We are affected. There could be malware or trojen horse in those (imports from China) which they can activate remotely (to cripple our power systems).

Singh's comments came as Prime Minister Narendra Modi made a surprise visit to a forward post in Ladakh this morning and interacted with troops days after the June 15 border clash with China in which 20 Indian soldiers were killed.
The government on Monday banned 59, mostly Chinese, mobile apps including Bytedance’s TikTok and Tencent’s WeChat in its strongest move yet targeting China in the online space.

Cabinet may approve a relief package for power discoms next week: Report

The Union Cabinet is likely to approve next week a package for discoms reeling under revenue loss due to lower power demand amid the coronavirus lockdown, including setting up of an alternative investment fund to pay off their dues towards electricity generation companies.
"The Cabinet in the coming week can approve a package for power distribution utilities (discoms) which are under stress due to lower demand and cash crunch," a source told news agency PTI.
"The package may include creating an alternate investment fund to pay off dues on behalf of the discoms to gencos. The discoms may be charged nominal interest rate and administrative expenses on that," he added.
The package may also include steps like directions to the state and central power regulators to reduce electricity traiff, the source sad.
The payment of dues would help distribution companies (discoms) to increase their electricity load (supplies) and ensure 24X7 uninterrupted power supply.
According to government data, discoms owe Rs 92,602 crore to power generation companies (gencos) as of February this year.
A report by industry body CII had said discoms are likely to suffer a net revenue loss of around Rs 30,000 crore and liquidity crunch of about Rs 50,000 crore due to the coronavirus-induced nationwide lockdown.
In its report released on Friday, CII had suggested host of measures like easy credit facility for discoms (from PFC and REC) to pay off its dues to gencos, lower tariff especially for industrial and commercial consumers and deferral of indirect taxes like electricity duty and coal cess.
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It said the power sector, one of the essential services under the lockdown till May 3, is battling the twin issues of demand and liquidity compression.
Latest data from Power System Operation Corporation Ltd (POSOCO) indicated that total demand per week between March 23 and April 12 was 18 BU (billion units), compared to 23 BU during the week of March 9-15 (before 'Janata Curfew' and lockdown) -- a 25-28 per cent reduction in demand.
Further extension of the lockdown could result in additional demand compression of 15 to 20 BU, implying a net revenue loss of Rs 25,000 to Rs 30,000 crore for the discoms, it had said.
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This will further increase the liquidity crunch to Rs 45,000 to 50,000 crore, in addition to the Rs 90,000 crore dues pending by the discoms to generating companies pre-lockdown.
Earlier in the week, Renewable Energy Secretary Anand Kumar had said, "We are planning to create an alternative investment fund that will help to give load and financial support to discoms and clear the due to be paid to developers and generators. Our effort is to release maximum due payments from discoms to the power generators,"
"We want to make sure that our power supply and renewable power are protected and not compromised. We tried to clear all the financial dues of the generators and developers to enhance the capital available with them," Kumar had said during a webinar.

Power discoms get relief of deferred payments, round-the-clock power supply

Power distribution companies (discoms) have been allowed to defer payments to power generators (gencos) and transmission companies (transcos) in the wake of delayed payments by electricity consumers.
The power ministry has asked the Central Electricity Regulatory Commission (CERC) to provide a three-month moratorium to discoms on payment to gencos and transcos.

Uniomn Power Minister R K Singh requested state governments to issue similar directions to state electricity regulatory commissions, according to a ministry statement.
The ministry also directed all the central power gencos and transcos to continue supply/transmission of electricity even to the discoms which had large outstanding dues. "During the present emergency, there will be no curtailment of supply to any discom," the ministry said in its public statement.
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State-owned discoms collectively owe Rs 85,000 crore to power gencos (as of December 2019). In June last year, the Centre made it mandatory for power discoms to prepay to power generators through Letter of Credit (LC) issued by banks. The prepaid amount has now been reduced by half under the lockdown period. The LC mechanism ensured timely future payment.
The statement further noted that due to the lockdown, consumers are unable to pay their dues to the discoms. "This has affected the liquidity position of the discoms thereby impairing their ability to pay to the generating and transmission companies," it said.
Thereby the ministry announced , till June 30, 2020, the payment security mechanism to be maintained by the discoms with the power generators for dispatch of power "shall be reduced by fifty percent."
This comes as a major relief for state-owned discoms, financial health of which is back in red with cumulative losses standing at Rs 18,316 crore as on December 2019.
This has spiralled into a loss vortex with gencos delaying payment to coal companies. The paper recently reported, power generating companies, especially the state government owned units owe Rs 22,770 crore to Coal India Limited (CIL), Singareni Collaries Limited (SSCL) and Neyveli Lignite Limited (NLC).
The ministry in its statement also addressed coal supply and said in order to maintain the continuity of supply of coal by domestic coal companies and transportation by railways, the ministry is in touch with the Ministries of Railways and Coal.