Low revenue recovery hits power discoms
Even as the electricity consumption has reached the pre-Covid level, the power distribution companies (discoms) continue to be battered by low revenue recovery, leading to mounting dues of the power generation companies.
The fall in revenue realisation is posing a renewed threat to the financial stability of the discoms. The UP Power Corporation Limited, along with its five wholly owned subsidiaries, have piled up an additional Rs 14,000 crore as overdue to generation companies during the first half of the current fiscal 2020-21.
As a result, their overdue to gencos rose from Rs 34,000 crore at end of 2019-20 to over Rs 37,000 crore by September end, despite these entities having paid Rs 10,500 crore received as soft loan from PFC-REC under a special liquidity facility under Atmanirbhar package announced by the Centre in May this year.
