Discoms Slash Outstanding Dues by 82%

In a significant development, outstanding dues of power distribution utilities (discoms) in India have decreased by 82% over two years, now standing at Rs 24,684 crore. This reduction follows the rescheduling of arrears into EMIs by 13 states. Meanwhile, plans to add 80,000 MW thermal capacity by 2031-32 are underway.

Power distribution utilities (discoms) in India have successfully slashed their outstanding dues by 82% to Rs 24,684 crore in over two years, according to information shared with Parliament on Thursday.

Minister of State for Power, Shripad Naik, informed the Rajya Sabha that 13 states had restructured arrears totaling Rs 1,39,947 crore as of June 2022 into equated monthly installments (EMIs). After 29 EMIs, along with pre-payment of some legacy dues, discoms have significantly reduced their debt burden.

Furthermore, in a concerted effort to enhance India's power infrastructure, the Ministry of Power, in collaboration with states, is planning to augment thermal power capacities by at least 80,000 MW by 2031-32, with substantial tranches already under construction or in developmental stages.

(With inputs from agencies.)