‘Discoms dues over Rs 1L cr, Rs 90k cr sops not enough’

The reason is that power distribution companies’ (discoms) pending dues to power generation companies (gencos) has risen 73 per cent year-on-year and 8 per cent month-on-month to Rs 1,05,000 crore as of April 2020.

The total outstanding stood at 1,23,000 crore (+52% yoy/+7% mom), close to its November 2015 peak of Rs 1,35,000 crore.

Of the total, discoms in key states of Rajasthan, Tamil Nadu, Uttar Pradesh, Maharashtra, Karnataka, Telangana and Jharkhand account for 81 per cent of the total overdue owed to gencos.

As per a report from Emkay Global Financial Services, discoms’ ailing financial health was exacerbated during the lockdown, leading to a steep fall in power off-take across the commercial and industrial segment. Also collection efficiency declined to 20% in April 2020 and 35-40% in May 2020.