Power distribution companies financial health is degrading as outstanding dues to power gencos rise 47% to INR 1.33 lakh crore as of June 2020
India's power distribution sector has been facing severe liquidity issues due to restricted cash flow, uncertain revenue due to closure of industrial and commercial operations, the prevailing low power demand in the sector, and also because many consumers are unable to pay their electricity bills due to the coronavirus outbreak, which has led to discoms being unable to clear their outstanding dues with the power generating companies. Power producers' total outstanding dues owed by distribution firms rose over 47 percent year-on-year to INR 1.33 lakh crore in June 2020, reflecting stress in the sector. Although in view of COVID-19-induced lockdown the central government had given some relief to discoms for paying dues to power generating companies (gencos), even the government had also waived the penal charges for late payment of dues. The government in order to help the discoms to pay their debt announced INR 90,000 crore liquidity infusion for discoms which might be increased to INR 1.25 lakh crore, under which these utilities would get loan at economical rates from PFC & REC Ltd. which further will help gencos to remain operational.
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Key Highlights
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Report Insights
State-run non-banking finance firms REC Ltd and Power Finance Corporation (PFC) have sanctioned loans worth about INR 68,000 crore so far under the INR 90,000 crore liquidity infusion package for discoms
PFC adjusts Andhra Pradesh discoms’ dues of about INR 600 crore with green companies
Must Buy For
Government Power Distribution Companies
Private Power Distribution Companies
Power Distribution Franchisee
Transmission Utilities
Power Generation Companies
Renewable Power Developers
Independent Power Producers
Power Research Institutes
Research Firms/Associations
Industry Associations / Technical Consulting Group
Financial Institutes
Key Governing Bodies
Companies Mentioned
Tata Power Delhi Distribution Limited
BSES Rajdhani
BSES Yamuna
Torent Power
Andhra Pradesh Southern Power Distribution Company
Andhra Pradesh Eastern Power Distribution Compnay
Paschim Gujarat Vij Company Limited
Uttar Gujarat Vij Company Limited
Madhya Gujarat Vij Company Limited
Dakshin Gujarat Vij Company Limited
Madhya Pradesh Madhya Kshetra Vidyut Viatarn Company Limited
Jaipur Vidyut Vitaran Nigam Limited
Dakshinanchal Vdyut Vitaran Nigam Limited
Kanpur Electricity Supply Company Limited
All Other State & Private Distribution Utilities & Franchises
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