UP starts interest waiver scheme for electricity consumers on bill arrears
Business

UP starts interest waiver scheme for electricity consumers on bill arrears

By Jessica

New Delhi: The Uttar Pradesh government has started an interest waiver scheme for electricity consumers on their bill arrears, the state’s Energy Minister for Srikant Sharma has said.

“Under the scheme, interest on arrears would be waived off for certain category of consumers,” Sharma, UP Minister for Energy and Additional Source of Energy, told reporters.

He said the money realised will pave the way for improvement as the department is already running at a deficit of Rs 90,000 crore.

The loan waiver scheme has been introduced as roughly 70 per cent of rural consumers are not able to deposit their bills in time, while 25 per cent of urban consumers have turned defaulters due to the non-payment of bills in time, the minister said.

He added that timely payment of bills by all will pave the way for an uninterrupted cheap power supply.

In this regard, interest on arrears has not only been waived off but the facility to pay the arrears in six easy instalments has also been extended for domestic consumers, the minister said.

According to the minister, for the first time, commercial consumers have been brought under the ambit of the scheme.

Respite has also been provided to small shopkeepers hit by the COVID-19 pandemic.

Full interest on arrears of shopkeepers for the under-two-kilowatts consumption category has been waived off, while 50 per cent interest on arrears of shopkeepers under the 2-5 kilowatt category will be waived off, the minister said. Also Read: Andhra Pradesh government rules out VAT cut on petrol, diesel, clears stance with newspaper ad

The objective of introducing the scheme is to fulfil the commitment of the government to provide a cheap, uninterrupted power supply, the minister said. Also Read: CDSL’s KYC arm data breach exposed 4.39 crore investors’ data twice: Report

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