In a serious monetary turnaround for India’s nationwide power sector, the excellent legacy cash owed of India’s power distribution companies (discoms) had been reduced by a staggering amount.
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Vitality line (Representational Portray) Photo: (Canva)
In a serious monetary turnaround for India’s nationwide power sector, the excellent legacy cash owed of India’s power distribution companies (discoms) had been reduced by a staggering amount.
In step with records offered to Parliament on Thursday, these arrears dropped from a extensive Rs 1.39 lakh crore in June 2022 to appropriate Rs 3,300 crore by March 2026.
In step with The Economic Times, this growth modified into highlighted by Minister of Teach for Vitality, Shripad Naik, in a written response to the Lok Sabha. The shift marks a serious milestone in the authorities’s efforts to bring monetary self-discipline to the vitality present chain.
Contemporary Principles and Portals
The first catalyst for this restoration modified into the notification of the Electricity (Uninteresting Fee Surcharge and Connected Matters) Principles, 2022, on third June 2022. Below these guidelines, all excellent funds owed to producing companies, merchants, and transmission corporations (TRANSCOs) had been labeled as “legacy arrears.”
To adjust these cash owed without crippling the utilities, the guidelines presented a compulsory rescheduling machine. Distribution licensees had been required to certain their backlogs through Equated Month-to-month Installments (EMIs).
Development has been monitored throughout the PRAAPTI portal (Fee Ratification and Analysis in Vitality Procurement). As of Twenty seventh March 2026, the portal reveals that latest dues stand at Rs 13,594 crore, bringing the total excellent amount, collectively with final legacy cash owed, to Rs 16,894 crore.
Addressing Financial Stress
No matter this success, the minister known a couple of continual challenges that bear historically introduced about price delays. These comprise:
Regulatory gaps: Disallowance of obvious charges incurred by utilities.
Income shortfalls: A persevered disparity between the Life like Trace of Provide (ACS) and the Life like Income Realised (ARR).
Subsidy delays: Uninteresting disbursement of subsidies and excellent dues from different enlighten authorities departments.
From UDAY to RDSS
The creep toward this monetary restoration started in earnest with the Ujwal DISCOM Assurance Yojana (UDAY) in November 2015. Aimed toward the operational and monetary turnaround of utilities, the scheme noticed 27 states and 5 Union Territories brand agreements.
Alternatively, Odisha, West Bengal, Delhi, and Chandigarh remained outside this explicit framework.
