Discoms’ dues to generators jump 34% to Rs 1.2 trillion amid Covid-19 hit

The Covid-19 pandemic continues to have a wider impact on the country’s power sector in the current financial year with the acute slowdown witnessed in the first quarter period carrying on further, albeit at a lot lower levels, affecting both demand and supply, and hiking the stress levels of state discoms.

According to analysts, the poor run for the sector during the pandemic has led to a further deterioration in the financial position of the power distribution companies (discoms) as their pending dues to power generation companies (gencos) have shot up again.

As per the power ministry data, discoms due to gencos increased 34.4 per cent year-on-year to Rs 1,25,743 crore as of end of October 2020 and Rs 1,068 crore more than at the end of September 2020.