States power discoms debts to hit all-time high of ₹4.5 trillion: Crisil
NEW DELHI: In what may exacerbate the weak financials of state-owned electricity distribution companies, their debt burden is expected to hit an all-time high of ₹4.5 trillion this fiscal, according to a Crisil Ratings report.
Discoms’ problems have assumed alarming proportions with states struggling to pay for the electricity bought, with the world’ longest lockdown worsening the already precarious finances of power discoms due to lower realizations.
“The Centre’s recent ₹90,000 crore liquidity line will help state power distribution companies (discoms) settle a significant portion of their overdue bills to generating companies. However, with power demand weak and cash losses high amid the Covid-19 pandemic, discoms would end up owing lenders a staggering ₹4.5 lakh crore by the end of this fiscal, or 30% more than last fiscal,” the report said.
