Power Sector Sees Major Reduction in Legacy Dues

Legacy dues of power distribution utilities have significantly dropped by 82% to Rs 24,684 crore. Thirteen states had arrears of Rs 1,39,947 crore by June 2022, rescheduling these into EMIs. This reduction follows the payment of 29 EMIs by discoms. The Ministry of Power plans to add significant thermal capacity by 2031-32.

The power distribution sector has seen a dramatic reduction in legacy dues, with figures plummeting by 82% to Rs 24,684 crore, as revealed in a Parliamentary session on Thursday.

According to Minister of State for Power Shripad Naik, 13 states had initially reported a whopping Rs 1,39,947 crore in arrears by June 2022, which were subsequently converted into equated monthly installments (EMIs).

Naik further stated that distribution utilities have made substantial payments totaling Rs 1,15,263 crore since June 2022. In addition, the Ministry of Power outlined plans to boost thermal capacity by at least 80,000 MW by 2031-32, with a significant portion already under construction or in planning stages.

(With inputs from agencies.)