The Ministry of Power (MoP) has issued a clarification regarding letters of credit (LoC) to be given by distribution companies (DISCOMs). It stated that DISCOMs are expected to deposit LoCs for 50% of the cost of power they want to be scheduled, while the remaining 50% will have to be paid within 45 days of the presentation of the bill or as specified in the power purchase agreement (PPA). If the payment is not made as specified, the late payment surcharge will apply.