Discom dues cross Rs 1.3 lakh crore in November

Coal Insights Bureau

Dues of power distribution companies (Discoms) payable to generators have been mounting, and have touched `1.31 lakh crore in November 2020, which is 28 percent higher than April 2020 levels.

The outstanding dues were the highest for the Discoms of Rajasthan (Rs 40,229 crore), followed by Tamil Nadu (Rs 21,825 crore) and Uttar Pradesh (Rs 14,329 crore). These three states accounted for 58 percent of the total outstanding dues.

The other states with sizeable dues are Karnataka, Maharashtra, Telangana, Jammu & Kashmir, Jharkhand, Andhra Pradesh, Madhya Pradesh and Haryana.

Discoms dues are at a high of 9x monthly bill. Covid-19 led demand destruction has stretched payment/ billing cycles for Discoms. Recent relief package of `1.2 trillion to Discoms is expected to diffuse this situation by 4Q FY21. JM Financial