While the government, Reserve Bank of India and the judiciary are grappling with the issue of stressed power projects worth Rs 2.5 lakh crore, the electricity distribution companies (discoms) are adding to the latter’s woes. Discoms’ unpaid dues to 23 power producers stood at Rs 44,195 crore at May-end, up 30% from the level a year earlier. In the six months to the end of May, these entities’ dues pending for more than 60 days rose 8.4% (CAGR) to Rs 33,650 crore.
Had the extra dues — Rs 13,260 crore — been paid by them in time, the discoms would not have reported the sharp cut in financial losses for FY18. The discoms had posted an annual reduction of Rs 17,352 crore (50%) in their losses by the end of March 2018, under the Ujwal Discom Assurance Yojana (UDAY) scheme. Read More