The total outstanding dues of electricity distribution utilities (discoms) has reduced by a third to around Rs 93,000 crore in May, in less than year of implementing the Late Payment Surcharge (LPS) Rules in June 2022.
The burgeoning dues of discoms toward power generation (gencos) mainly and transmission (trancos) firms have been affecting the entire value chain of the sector till last year.
According to industry data, in June last year, discoms’ dues were at Rs 1.39 lakh crore at the time of the launch of the Late Payment Surcharge (LPS) scheme.
