Power distribution companies (Discoms) need to recover over Rs. 30,000 crore from State government departments alone.
The quantum of dues is staggering even after netting off the Electricity Duty that is to be paid to State governments by the Discoms. According to data compiled by the Centre, Discoms are left with dues worth over Rs. 16,000 crore from government departments, after offsetting the Electricity Duty.
The Electricity Duty is used to cross subsidise power consumption in a State. The duty is usually paid by industrial consumers and the amount collected is used to offer cheaper power to agricultural and domestic consumers. The State government uses this tax to subsidise needy consumers.
