Discoms’ debt to hit Rs 4.5 lakh crore by FY21, says CRISIL
Power distribution utilities’ debt will hit an all-time high of Rs 4.5 lakh crore by the end of the ongoing financial year, CRISIL Ratings said on Friday.
The liquidity package of Rs 90,000 crore announced by the government last month offers a breather, but structural reforms have become critical to sustainability of discoms, the rating agency said in a statement.
The package will help state power distribution companies (discoms) settle a significant portion of their overdue bills to generating companies, it said.
