UP Launches Interest Relief Program for Electricity Consumers on Overdue Bill | Economic news
New Delhi: The government of Uttar Pradesh has launched an interest relief program for electricity consumers on their overdue bills, said state energy minister for Srikant Sharma.
“Under this program, default interest would be waived for certain categories of consumers,” Sharma, UP Minister of Energy and Additional Energy Sources, told reporters.
He said the money made would pave the way for improvements as the department is already running a deficit of Rs 90,000 crore.
The loan waiver program was introduced because about 70% of rural consumers are unable to deposit their bills on time, while 25% of urban consumers have become delinquent due to not paying bills on time, a declared the minister.
He added that prompt payment of bills by all would pave the way for uninterrupted and inexpensive power supply.
In this regard, the default interest has not only been removed, but the option to pay arrears in six easy installments has also been extended to domestic consumers, the minister said.
According to the minister, for the first time, commercial consumers have been subjected to the regime.
Respite was also offered to small businesses affected by the COVID-19 pandemic.
The full interest on arrears from merchants for the consumption category of less than two kilowatts has been waived, while the 50% interest on arrears from merchants in the 2-5 kilowatt category will be waived, the minister said. Also read: Andhra Pradesh government excludes VAT cut on petrol and diesel, clarifies position with newspaper ad
The aim of introducing this program is to fulfill the government’s commitment to provide inexpensive and uninterrupted power supply, the minister said. Also Read: CDSL KYC Arm Data Breach Twice Exposed 4.39 Crore Investor Data: Report