Power Discoms Dues Reduced to Rs 50,000 Cr: Power Minister

New Delhi, Feb 8 (PTI) Total outstanding dues of power distribution companies have come down to around Rs 50,000 crore following the implementation of Electricity (LPS and Related Matters) Rules, 2022, Parliament was informed Thursday.

Total outstanding dues of distribution companies (discoms) were at Rs 1,39,947 crore in June 2022, Power Minister R. K. Singh said in a reply to the Lok Sabha.

"With the implementation of the rules, a remarkable improvement has been seen in recovery of outstanding dues. The dues have reduced to Rs 49,452 crores after timely payment of eighteen (18) monthly installments as on 31.01.2024," he said

Distribution companies are also paying their current dues in time to avoid regulation of open access under the rule, Singh said.

This rule has not only ensured that the outstanding dues are liquidated but has also ensured that the current dues are paid on time, the minister said.

"It may be seen that the rule has played a vital role towards ensuring the financial discipline in discoms. This would facilitate investment in the sector necessary to sustain 24x7 electricity supply to consumers," the minister said.

In a separate reply, the minister informed 19 coal-based thermal power plants of total capacity 2.3 GW retired in last three years.

While, 28.8 GW power capacity added during March 2022 to December 2023 and the total installed electricity capacity of the nation stands at 428 GW, he said.