For the Union governmentÂ’s debt restructuring plan for State-owned power distribution companies, at least six states have agreed to subscribe. The deadline for States to opt for the package has been extended by three months and would now end on March 31. The three-month period would be used to accommodate agreements by more states and ensure consensus building among stakeholders.
Once accepted by all states, the Rs 1.9-lakh-crore package is expected to bail out financially-stressed distribution comÂpanies and usher in long-pending reforms in the power sector. The six states – Rajasthan, Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Haryana and JharÂkhand – have formally communicated to the Centre about their agreement on the financial restructuring package (FRP), a senior official concerned said. The six states were ready to accept the terms and conditions of the plan, including reduction of aggregate technical and commercial (AT&C) losses and timely tariff revisions.
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