Front Page | December 2012
CCEA approves setting up of National Electricity Fund
Our Mumbai Bureau
The Union Cabinet Committee on Economic Affairs (CCEA) has approved the setting up of National Electricity Fund (NEF) (Interest Subsidy Scheme) to provide an interest subsidy aggregating to Rs 8,466 crore on loan disbursement amounting to Rs 25,000 crore to the State power utilities - both in the public and private sector, to improve the distribution network.
This was revealed by the Union Minister of State (Independent Charge) for Power, Jyotiraditya Scindia in the Lok Sabha. For financial assistance from NEF (Interest Subsidy) Scheme, States have been categorised as special category and focused states and States other than special category and focused States.
The preconditions for eligibility are linked to reform measures taken by the States and the amount of interest subsidy is linked to the progress achieved in reforms linked parameters. The objective of the NEF scheme is to expedite investment in distribution sector to improve infrastructure and to incentivise the reform process in the sector.Projects under the scheme received from States are yet to be sanctioned.