RK Singh minister of Power & renewable energy has urged states to maintain the sanctity of contracts and make timely payment to power generating companies. This as state discoms' dues at the end of August 2019 stand at Rs 59,586 crore and some states like Andhra Pradesh and Uttar Pradesh are looking to rework their power purchase contracts.

“Discoms need to be able to buy power to provide 24/7 power supply. Electricity connectivity under Saubhagaya across India will lead to an increase in demand for electricity. Investments in the power sector should come as per demand and it can be expected only when there’s ease of doing business and there is a sanctity of contracts. One state violated the sanctity of PPA contract and I received calls from ambassadors of five countries.", he said.

Singh added, "No investments will come in the sector when discoms continue with non-payment of bills. No bank wants to lend to the power sector because the sector has become stressed. The future of the country is more important than the next election.”

The power minister also said that it is difficult for state discoms to be a retailer of electricity and suggested that instead they should look at being a wholesaler and provide fair tariffs to consumers.

“Discoms have made the system inefficient and have become a monopoly. I’m a believer in the rights of a citizen in a democracy. Consumers must have multiple choice of electricity supply”, said RK Singh.