Discom collections to be hit amid Lockdown: Ind-Ra

Amid lockdown to contain coronavirus infection, bill collections of discoms would have a significant impact and their power purchase cost may increase, a report by India Ratings (Ind-Ra) has said.

The report listed various factors such as low demand from industrial consumers; higher-than-expected aggregate technical and commercial (ATC) losses; higher dependence on direct collections from consumers compared to subsidy and inability to increase tariffs immediately, which would impact cash flow of discoms.