All India Power Engineers Federation (AIPEF) has termed the central government announcement of the package for power sector amounting to Rs. 90,000 crore as a financial package for the private power generators.

 V K Gupta Spokesperson AIPEF said that the Federation strongly Oppose this policy of central Govt to give concessions to private power generators at the cost of state-owned power utilities. The outstanding dues of state Discoms towards power generators stands at Rs.94,000 crore so it is very clear that state power generators will not get any amount from this package. The amount shall be given by REC and PFC as a loan to the Discom after the state government give guarantee for the same and it shall be utilized for making payments to the private generators. There is no mention of dues payable to state sector power generators who also supply power to the state Discoms.

 Shailendra Dubey Chairman AIPEF said that this will be leading to a massive increase in electricity tariffs. The average tariff in India already at a high level of Rs.8 per unit. The state government departments’ dues towards state Discoms exceed Rs. 70, 000 crore and if only these dues are cleared by state governmeynts then the financial position of Discoms can improve during the lockdown period.