Dues owed by discoms has gone up 50 percent as government subsidy continues to get delayed
Dues owed by distribution companies (discoms) has gone up by more than 50 per cent to Rs 80,000 crore, showing no sign of abating, as government subsidy continues to get delayed.
This increase in dues,which was Rs 54,654 crore (according to PRAAPTI), is due to a combination of factors – from inaccurate billing to continued high Aggregate Technical and Commercial (AT&C) losses, as a result of leakages and non collection of payments.
In FY18, the actual AT&C losses of six discoms – Eastern Power Distribution Company of Andhra Pradesh, discoms of Telangana, North Eastern Electricity Supply Company of Odisha, Dakshin Vidyut Vitran Nigam Limited of Uttar Pradesh and Uttrakhand Power Corporation Limited – were higher than that of FY17. This has impacted the financial profiles of discoms, according to industry watchers.
