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Andhra Pradesh sanctions INR 1,381 crore advance tariff subsidy for three power discoms

#Law & Policy#Industrial#India#Andhra Pradesh#Amaravati
Synopsis

The Andhra Pradesh government has approved an advance tariff subsidy of INR 1,381 crore for the state's three power distribution companies (DISCOMs) for the financial year 2026-27. The allocation includes separate grants for Andhra Pradesh Eastern, Southern and Central power distribution companies to support tariff subsidy payments. Following this approval, the Energy Department has retained a balance budget of INR 1,364 crore from the total allocation of INR 2,744.4 crore. The move is aimed at ensuring timely financial support to the utilities for maintaining power supply and meeting subsidy commitments.

The Andhra Pradesh government has sanctioned an advance tariff subsidy of INR 1,381 crore for the state's three power distribution companies (DISCOMs) for the financial year 2026-27. The approval was issued through a government order by the Energy Department to provide financial support for the state's electricity distribution utilities. 
K. Vijayanand, Special Chief Secretary, Energy Department, said the approved subsidy includes INR 332 crore for Andhra Pradesh Eastern Power Distribution Company Ltd (APEPDCL), INR 603 crore for Andhra Pradesh Southern Power Distribution Company Ltd (APSPDCL), and INR 445 crore for Andhra Pradesh Central Power Distribution Corporation Ltd (APCPDCL). 
According to the government order, the state government, after examining the proposal, granted administrative sanction for INR 1,380.7 crore as advance tariff subsidy for the financial year 2026-27. The sanctioned amount has been rounded off to INR 1,381 crore in the official allocation. 
The order further stated that, after releasing the advance subsidy, the Energy Department will continue to have a remaining budget of around INR 1,364 crore. Out of the total budget provision of INR 2,744.4 crore earmarked for tariff subsidy, INR 1,381 crore has now been allocated to the three DISCOMs, while the balance amount will remain available for future requirements during the financial year. 
Tariff subsidies are provided by state governments to compensate power distribution companies for supplying electricity to eligible consumer categories at subsidised rates. These payments help DISCOMs manage their finances while ensuring uninterrupted electricity supply and reducing the burden of subsidised tariffs on the utilities. 
Source PTI

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