Among key measures announced by the Finance Minister Nirmala Sitharaman was also a stimulus of Rs3.03 lakh cr for Reform-Based Result-Linked Power Distribution Scheme. On Tuesday, power stocks traded broadly in red.
FM on Monday announced that Revamped Reforms-Based, Result-Linked power distribution scheme of financial assistance to DISCOMS for infrastructure creation, up-gradation of system, capacity building and process improvement was announced in the Union Budget of 2021-22. It aims at state-specific intervention in place of “one size fits all”.
Under the scheme, participation is contingent on pre-qualification criteria like the publication of audited financial reports, upfront liquidation of State Government’s dues/subsidy to DISCOMS and non-creation of additional regulatory assets.
Further, the scheme is aimed to assist with the installation of 25 crore smart meters, 10,000 feeders, 4 lakh km of LT overhead lines. Ongoing works of IPDS, DDUGJY and SAUBHAGYA will also be merged into the scheme.
That said, the FM announced a total outlay of Rs3,03,058cr for the scheme, out of which, the Central Government’s share will be Rs97,631cr.
According to the FM, the amount available under the scheme is in addition to the allowed additional borrowing of 0.5% of Gross State Domestic Product which will be available to the States annually for the next four years subject to carrying out specified power sector reforms. The amount of borrowings available this year for this purpose is Rs1,05,864cr.
At around 11.44 AM, BSE Power is trading at 2,771.73 down by 17.59 points or 0.63%.
Stocks in the red are – Adani Transmission, Adani Green, Thermax and IEX tumbling between 1-3.3%. BHEL, KEC, Adani Power and ABB plunged nearly 1% each.
However, Power Grid surged nearly 1% followed by Tata Motor gaining 0.5% on the index.
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