'States to get two years for DBT, a/cs with discoms to be used'

NEW DELHI: In a sharp deviation from the practised model of cash transfers, the government proposes to initiate direct benefit transfer (DBT) in the power sector by making payment of subsidy into the accounts of consumers maintained by Discoms and not directly into their bank accounts.

The amendments to the Electricity Act, 2003, (Electricity Amendment Bill, 2020) which is in last leg of finalisation and is with the Law Ministry for vetting before being introduced in Parliament, has remodelled DBT structure with states being asked to subsidise tariff for certain identified consumers by transferring the subsidy amount in advance into the electricity accounts of consumers maintained by discoms, Minister of State for Power and New and Renewal Energy R.K. Singh told IANS in an interview.

He said that the said provision has also been made in the new tariff policy which is also with the the Cabinet for final approval.

The minister said that states have been brought on board over the proposed reform initiative and to give time for them to settle with the new system of subsidy, the states would be permitted to delay its implementation by one year, which can be extended for further another year depending on the preparedness of the states. (IANS) 

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