Discom dues swell despite govt’s Atmanirbhar boost

The central government’s ₹1.26 trillion Atmanirbhar package for state power distribution companies (discoms) has failed to have the desired effect thanks to tough conditions, slow disbursals and bank loans which are easier to get. Discoms’ overdues to power generation companies rose from ₹94,000 crore in June 2020 when the scheme was announced to ₹1.28 trillion by 31 December, data from the central government’s Praapti portal showed, even as much of the scheme’s funds remain unused.

Power generators give discoms 45-60 days to pay for the electricity supplied to them. Delays beyond this are classified as overdues, attracting a penal interest.

While loans to discoms have been sanctioned to the full extent of ₹1.25 trillion, disbursals have only touched ₹46,100 crore, a report by ICICI Securities said. While disbursals did slow down the growth of overdues, aggregate amounts remain high.