The Power Ministry is working on a mechanism to help reduce the debt of state electricity distribution utilities, said Piyush Goyal, Minister for Power, Coal and New & Renewable Energy, on Tuesday. The mechanism is to be finalised soon.

“We have had an extensive meeting with state chief secretaries on Saturday. The States and the Centre are working together as one. The States are also conscious of their responsibilities,” said Goyal.

The minister added that he aims to bring down the losses of distribution utilities in the next 2-3 years. Officials of state electricity distribution utilities also had a meeting with Prime Minister Narendra Modi on Monday.

Estimates suggest the combined debt of distribution utilities stands at over ₹3 lakh crore. However, Goyal has ruled out a bailout package and said that the government is committed to finding a permanent solution to the problem.

The Minister was inaugurating the National Biogas Convention, 2015. During his address, Goyal said the fastest way to provide energy to the last mile is decentralised power production across the country.

Renewables commitment

Goyal emphasised that the Ministry of New & Renewable Energy remains committed to all forms of renewable sources of energy, including biogas.

“Biogas offers an important solution to the present energy crisis in rural areas. Besides being a clean and important source of energy for cooking, it is an environmentally green and clean technology,” the minister pointed out.

Related Topics