Parliament Question: Financial liability of DISCOMs

GOVERNMENT OF INDIA MINISTRY OF POWER RAJYA SABHA UNSTARRED QUESTION NO.1113 ANSWERED ON 09.02.2026 FINANCIAL LIABILITY OF DISCOMS 1113 SHRI S NIRANJAN REDDY: Will the Minister of POWER be pleased to state: (a) whether it is a fact that electricity distribution companies (DISCOMs) have reported a cumulative net profit of ₹ 2,701 crore in Financial Year 2025; (b) whether it is also a fact that despite net profit in Financial Year 2025, the DISCOMs are under a cumulative debt of over ₹7 trillion since last ten years; (c) whether it is a fact that around ₹2.74 trillion has been assessed as “unsustainable” by Government; and (d) the measures being taken to address this liability? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK) (a) to (d) : As per the PFC’s 14th Annual Integrated Rating and Ranking report on Power Distribution Utilities, the DISCOM-wise accumulated surplus/loss and total borrowings as on 31.03.2025 are placed at Annexure. Government of India has been supporting the distribution utilities to improve their financial viability through various initiatives. Some of the key initiatives taken are as under: i. Revamped Distribution Sector Scheme (RDSS) has been launched in the year 2021 with the objective of improving the quality and reliability of supply of power through a financially sustainable and operationally efficient distribution sector. The release of funds under the scheme is linked to performance of the States/ distribution utilities against financial and operational parameters. ii. Additional borrowing space of 0.5% of Gross State Domestic Product (GSDP) has been made available to State Governments, which is conditional upon them undertaking specific reforms in the power sector including financial performance of the distribution utilities. iii. Additional Prudential Norms have been laid down for sanctioning of loans to State-owned power utilities based on performance of power distribution utilities against prescribed conditions. …….2.- 2 - iv. Rules for implementation of Fuel and Power Purchase Costs Adjustment (FPPCA) and cost- reflective tariff have been framed so as to ensure that all prudent costs for supply of electricity are passed through. v. Rules and Standard Operating Procedure have been issued for proper subsidy accounting and their timely payment. With concerted efforts of Central and State Governments, the Aggregate Technical and Commercial (AT&C) losses at national level have reduced from 21.91% in FY21 to 15.04% in FY25 while the national Average Cost of Supply - Average Revenue Realized (ACS-ARR) gap has narrowed from Rs. 0.69/kWh to Rs. 0.06/kWh. These collective efforts have also resulted in DISCOMs achieving a profit after tax of Rs 2,701 crore for the first time. Financial liabilities of distribution utilities are the contingent liabilities of the respective State Governments and need to be recognized as such. As per information submitted to Power Finance Corporation (PFC) by the six states of Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu that have a very high share (66%) of total borrowings of DISCOMs, i.e. Rs. 2,74,120 crore as on 31.03.2025 is the quantum of debt not allowed by regulator (for recovery through tariff) and is treated as unsustainable. **********ANNEXURE ANNEXURE REFERRED IN REPLY TO PARTS (c) & (d) OF UNSTARRED QUESTION NO. 1113 ANSWERED IN THE RAJYA SABHA ON 09.02.2026 ************* DISCOM wise financial and operational parameters as on 31.03.2025 Accumulated Surplus/ State/ DISCOM Total Borrowings (Rs Cr) (Loss) (RsCr) State Sector (6,77,561) 7,11,402 Andaman & Nicobar - - Islands - - Andaman & Nicobar PD Andhra Pradesh (29,420) 77,583 APCPDCL (9,688) 21,204 APEPDCL (7,155) 20,693 APSPDCL (12,577) 35,687 - - Arunachal Pradesh - - Arunachal PD Assam (1,028) 1,131 APDCL (1,028) 1,131 Bihar (16,526) 14,002 NBPDCL (4,917) 6,509 SBPDCL (11,608) 7,494 Chhattisgarh (10,423) 5,428 CSPDCL (10,423) 5,428 - - Delhi - - NDMC - - Goa - - Goa PD Gujarat 7,355 258 DGVCL 2,507 26 MGVCL 877 9 PGVCL 2,276 208 UGVCL 1,695 15 Haryana (27,915) 20,311 DHBVNL (13,052) 12,099 UHBVNL (14,862) 8,213 Himachal Pradesh (3,391) 7,024 HPSEBL (3,391) 7,024 Jharkhand (20,512) 22,381 JBVNL (20,512) 22,381Karnataka (34,980) 47,993 BESCOM (13,819) 22,611 CHESCOM (4,064) 5,410 GESCOM (5,661) 6,147 HESCOM (11,398) 12,251 MESCOM (37) 1,575 Kerala (38,648) 17,638 KSEBL (38,648) 17,638 - - TCED - - Ladakh - - Ladakh PD Madhya Pradesh (71,394) 49,239 MPMaKVVCL (30,900) 18,176 MPPaKVVCL (12,503) 14,184 MPPoKVVCL (27,992) 16,878 Maharashtra (35,671) 90,659 - - BEST MSEDCL (35,671) 90,659 Manipur (290) 745 MSPDCL (290) 745 Meghalaya (4,962) 1,474 MePDCL (4,962) 1,474 - - Mizoram - - Mizoram PD - - Nagaland - - Nagaland PD - - Puducherry - - Puducherry PD Punjab (3,404) 17,411 PSPCL (3,404) 17,411 Rajasthan (90,303) 98,488 AVVNL (25,563) 26,126 JdVVNL (34,689) 36,793 JVVNL (30,052) 35,569 - - Sikkim - - Sikkim PD Tamil Nadu (1,19,153) 1,01,782 TNPDCL (1,19,153) 1,01,782Telangana (69,741) 59,230 TSNPDCL (21,399) 21,885 TSSPDCL (48,342) 37,345 Tripura (991) 842 TSECL (991) 842 Uttar Pradesh (1,00,858) 61,395 DVVNL (33,974) 16,412 KESCO (5,232) 2,243 MVVNL (25,236) 14,338 PaVVNL (8,782) 6,562 PuVVNL (27,634) 21,840 Uttarakhand (5,482) 1,729 UPCL (5,482) 1,729 West Bengal 174 14,658 WBSEDCL 174 14,658 Private Sector 30,351 14,975 Delhi 22,184 2,914 BRPL 12,892 894 BYPL 5,650 701 TPDDL 3,642 1,319 Gujarat 3,892 3,562 Torrent Power Ahmedabad 3,206 3,354 Torrent Power Surat 686 208 Maharashtra 1,245 3,818 AEML 1,245 3,818 Odisha 1,263 4,531 TPNODL 480 1,006 TPSODL 219 1,498 TPWODL 301 1,093 TPCODL 262 933 Uttar Pradesh 1,561 0 NPCL 1,561 0 West Bengal 205 151 IPCL 205 151 Grand Total (6,47,210) 7,26,378 **********