PM Modi asks states to clear power utilities' dues of Rs 2.5 lakh crore

With dues from state governments to power utilities touching around Rs 2.5 lakh crore, Prime Minister Narendra Modi on Saturday appealed to the states to make early payments so that the energy sector can be strengthened.

"Different states have outstanding dues of more than Rs 1 lakh crore towards power utilities for supplying power. The states must clear another Rs 75,000 crores dues to power utilities for supplying power under subsidy scheme. Many government departments and local bodies owe more than Rs 60,000 crore rupees to power distribution companies. About Rs 2.5 lakh crore of companies responsible for activities ranging from the generation of electricity to the door-to-door delivery are 'trapped'," the PM said.

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The Prime Minister was virtually addressing the closing function of the 'Ujjwal Bharat Ujjwal Bhavishya – Power @2047' event.

Modi said losses in the power distribution sector are in double digits, whereas in the developed countries these are in single digits.

The event was attended by several chief ministers, union ministers and officials, besides beneficiaries of various schemes.

"It is not a matter of 'Rajniti' (politics) but pertains to 'Rashtra Niti' and nation building", he said highlighting the problems in the power sector in the country.

The Prime Minister said that in the last eight years, about 1,70,000 MW of electricity generation capacity has been added in the country. One Nation One Power Grid, he said, has become the strength of the country today.

About 1,70,000 circuit kilometre transmission lines have been laid to connect the entire country. By giving 3 crore connections under the Saubhagya Scheme, the country is also nearing the saturation goal, he added.