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    Question

    Which of the following companies do not produce

    electricity, they buy the electricity from the producers and then distribute it to consumers?
    A PROCOM Companies Correct Answer Incorrect Answer
    B DISCOM Companies Correct Answer Incorrect Answer
    C INTCOM Companies Correct Answer Incorrect Answer
    D TONCOM Companies Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    DISCOMs stands for ‘Distribution Company’. Discoms are the companies that are responsible for the distribution the electricity to the consumers. These companies do not produce electricity, they buy the electricity from the producers and then distribute it to consumers. For the second time in two years, the union ministry of power has notified a scheme for the power distribution companies (discoms) to defer their dues towards the power generating companies (gencos). With the dues of the discoms touching a record high of Rs 1 trillion, the ministry has proposed a scheme to liquidate the discoms’ dues. The proposed scheme would enable the discoms to pay their dues in 48 instalments. According to the government data, Tamil Nadu is the biggest defaulter, with Rs 20,842 crore dues to gencos. It is followed by Maharashtra, with Rs 18,000 crore dues and Uttar Pradesh with Rs 9,000 crore.

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