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REC elevates power sector yet again; sanctions 22,000 cr under new LPS Rules

As a step towards addressing the issue of mounting dues of the State power utilities which has now crossed 1,50,000 crore, the Ministry of Power, Govt. of India has issued Electricity, (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules 2022). This initiative works with the sole aim of financially strengthening the electricity suppliers and bringing financial discipline in the power sector.Furthermore, it will ensure that the end consumer not only gets reliable and quality uninterrupted supply of electricity, but additionally it alleviates the interest burden on account of late payment of power purchase dues by the State utilities. REC and PFC (State run financial institutions in the power sector) were advised by the Ministr.....

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