Parliament Question: Impact of Electricity Rules on improving Payment Discipline among DISCOMs

GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.6364 ANSWERED ON 02.04.2026 IMPACT OF ELECTRICITY RULES ON IMPROVING PAYMENT DISCIPLINE AMONG DISCOMS

6364. SHRI MANISH JAISWAL:

SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:

Will the Minister of POWER

be pleased to state:

(a) the impact of the Electricity (Late Payment Surcharge and Related Matters) Rules on improving payment discipline among Power Distribution Companies (DISCOMs);

(b) the total amount of outstanding dues of DISCOMs to power generation companies that has been cleared since the implementation of these rules;

(c) whether the Government has reviewed the financial stability of the power sector and the status of power supply infrastructure in various regions including districts such as Hazaribagh and Ramgarh in Jharkhand and if so, the details thereof; and

(d) the measures taken to ensure financial sustainability of the power sector and timely payments across the electricity supply chain? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK)

(a) & (b) : As a result of the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules), the outstanding legacy dues have reduced from Rs 1,39,947 crore as on 03.06.2022 to. Rs. 3,330 crore as on 27.03.2026. DISCOMs are also paying their current dues in time to avoid regulations under the rule.

(c) & (d): Electricity being a concurrent subject, supply and distribution of electricity to all consumers is within the purview of the respective State Government/ distribution utility. Government of India (GoI) supplements the efforts of the States through various schemes to help achieve the objective of providing quality and reliable supply of power to all consumers. This includes works amounting to Rs 1.85 lakh crore executed under earlier schemes of DDUGJY, Integrated Power Development Scheme (IPDS), and SAUBHAGYA, including Rs 11,431 crore in the State of Jharkhand, including districts such as Hazaribagh and Ramgarh.

………2.- 2 - Now under Revamped Distribution Sector Scheme (RDSS), launched with the objective of improving the quality and reliability of power supply to consumers through a financially sustainable and operationally efficient distribution sector, distribution infrastructure works including smart metering works worth Rs. 2.83 lakh crore have been sanctioned. This includes works amounting to Rs 4,326 crore for the State of Jharkhand (district wise details are enclosed at Annexure). Financial support under RDSS is contingent upon performance of the utilities against various operational and financial parameters.

In addition to LPS Rules and RDSS, GoI has been supporting the distribution utilities to improve their operational performance and financial viability through various initiatives. Some of the key initiatives taken are as under:

i. 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.

ii. 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. iii. 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.

iv. 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 and the gap between Average Cost of Supply and Average Revenue Realized (ACS-ARR) has narrowed from Rs. 0.69/kWh to Rs. 0.06/kWh. *****************ANNEXURE ANNEXURE REFERRED IN REPLY TO PARTS (c) & (d) OF UNSTARRED QUESTION NO. 6364 ANSWERED IN THE LOK SABHA ON 02.04.2026 ************* District wise sanctioned cost of works* in Jharkhand under RDSS District Sanctioned cost (Rs crore) Bokaro 220 Chatra 72 Deoghar 218 Dhanbad 298 Dumka 78 East Singhbhum 469 Garhwa 195 Giridih 234 Godda 110 Gumla 141 Hazaribagh 201 Jamtara 97 Khunti 45 Koderma 102 Latehar 78 Lohardaga 89 Pakur 82 Palamu 276 Ramgarh 214 Ranchi 622 Sahebganj 91 Saraikela Kharsawan 102 Simdega 90 West Singhbhum 150 Sub Total 4,272 PMA charges 54 Total 4,326 *Including smart metering works.

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