Home India POWER Parliament Question: Outstanding Debt and Payables of DISCOM...
Date: 2025-12-18 Category: Not Applicable State: Union Government Country: India

Parliament Question: Outstanding Debt and Payables of DISCOMs

Issued by POWER · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

**Executive Summary** The document is a response from the Ministry of Power to questions raised in the Lok Sabha regarding the outstanding debt and payables of Distribution Companies (DISCOMs). It provides details on the current status, the impact of the Ujwal DISCOM Assurance Yojana (UDAY), and government measures to reduce DISCOM losses. The response is dated December 18, 2025, and references data as of March 31, 2025, and October 30, 2025. **Key Points / Main Content** * **Outstanding Debt and Payables:** * State-wise details of outstanding debt and payables for power purchase as of March 31, 2025, are provided in Annexure I and II. * Payables for power purchase at the national level have decreased from 132 days (FY24) to 120 days (FY25 Provisional). * Legacy Dues of Generating Companies, Traders and Transcos have reduced from Rs. 44,701 Cr in March 2024 to Rs. 18,857 Cr in March 2025. * **Ujwal DISCOM Assurance Yojana (UDAY):** * UDAY aimed to improve operational and financial turnaround of State-owned DISCOMs through efficiency improvements and financial restructuring. * Under UDAY, States took over 75% of DISCOM debt as of September 30, 2015. * AT&C losses reduced from 23.70% in FY16 to 20.78% in FY20 due to States and DISCOMs participation under UDAY and other efficiency measures. * DISCOM-wise target and achievement of AT&C Loss is enclosed at Annexure III. * **Government Initiatives to Reduce DISCOM Losses:** * The Government of India supports State distribution utilities to improve performance through various initiatives. * Key initiatives include: * Revamped Distribution Sector Scheme (RDSS) launched to improve power quality and reliability. Funds are linked to States/distribution utilities taking necessary measures. * Performance-linked additional borrowing space of 0.5% of GSDP allowed to State Governments. * Additional Prudential Norms mandated for sanctioning loans to State-owned power utilities. * Implementation of Fuel and Power Purchase Costs Adjustment (FPPCA) and cost-reflective tariff. * Rules and Standard Operating Procedure issued for proper subsidy accounting and release. * AT&C losses at the national level have reduced from 21.9% in FY21 to 16.16% in FY25, and the ACS-ARR gap has reduced from Rs. 0.69/kWh in FY21 to Rs. 0.11/kWh in FY25. **Impact Analysis** **State Governments / Distribution Utilities** * **Impact:** The initiatives outlined affect state-owned power distribution companies and state governments. Improvements in performance can lead to greater financial stability, operational efficiency, and access to additional borrowing space. * **Action Required:** States and distribution utilities must implement the necessary measures to improve their performance to access funds under the RDSS and leverage the additional borrowing space. They also need to implement FPPCA and ensure proper subsidy accounting.

Key Entities Referenced

Distribution Companies (DISCOMS): Electricity distribution companies facing debt and operational challenges. Revamped Distribution Sector Scheme (RDSS): A scheme to improve the quality, reliability, and financial sustainability of the power distribution sector. Ujwal DISCOM Assurance Yojana (UDAY): Scheme for operational and financial turnaround of State-owned DISCOMs. Ministry of Power: The central government ministry responsible for power-related policies and initiatives. State distribution utilities: Entities responsible for power distribution within states.
Official Source Record View Original Source →
See Full Document Text
GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.3075 ANSWERED ON 18.12.2025 OUTSTANDING DEBT AND PAYABLES OF DISCOMs 3075. ADV. ADOOR PRAKASH: DR. KIRSAN NAMDEO: Will the Minister of POWER be pleased to state: (a) the details of the total outstanding debt and payables of Distribution Companies (DISCOMs) as of 30.10.25; (b) the details of the Ujwal DISCOM Assurance Yojana (UDAY) goals along with the status of viability, DISCOM-wise; (c) the number of DISCOMs met UDAY targets for loss reduction; and (d) the measures being taken by the Government to reduce DISCOMs losses and gaps between revenues and costs? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK) (a): State-wise details of outstanding debt and payables for power purchase as on 31.03.2025 are enclosed at Annexure I and II respectively. Payables for power purchase at national level have reduced from 132 days level (FY 24) to 120 days level (FY 25(Provisional)). Further, Legacy Dues of Generating companies (IPPs, CPSEs and Renewable Energy Developers), Traders and Transcos have reduced from Rs.44,701 Cr in March 2024 to Rs.18,857 Cr in March 2025. (b) & (c): UDAY was launched with an overall objective of operational and financial turnaround of State owned DISCOMs through efficiency improvements and financial restructuring. Recognising that the liabilities of the State owned DISCOMs are the contingent liabilities of the States themselves, UDAY envisaged States taking over 75% of the debt of the DISCOMs as on 30.09.2015. As a result of participation of States and DISCOMs under UDAY and other efficiency measures, AT&C losses reduced from 23.70% in FY16 to 20.78% in FY20. DISCOM-wise target and achievement of AT&C Loss is enclosed at Annexure III. (d): Government of India has been supporting the State distribution utilities to improve their performance through various initiatives. Some of the key initiatives taken for improving the viability of the distribution utilities, are as under: • Revamped Distribution Sector Scheme (RDSS) launched with the objective of improving the quality and reliability of power through a financially sustainable and operationally efficient distribution sector. The release of funds under the scheme is linked to States/ distribution utilities taking necessary measures to improve their performance. ……2.- 2 - • Performance linked additional borrowing space of 0.5% of GSDP allowed to State Governments. • Additional Prudential Norms mandated for sanctioning of loans to State owned power utilities. • Rules have been put in place for implementation of Fuel and Power Purchase Costs Adjustment (FPPCA) and cost reflective tariff so as to ensure that all prudent expenses for supply of electricity are passed through. • Rules and Standard Operating Procedure issued for proper subsidy accounting and release. The States/ distribution utilities are implementing the reforms and with the concerted efforts of Central and State Governments/ distribution utilities, AT&C losses at national level have reduced from 21.9% in FY21 to 16.16% in FY25 and ACS-ARR gap has reduced from Rs 0.69/kWh in FY21 to Rs. 0.11/kWh in FY25. ************ANNEXURE-I ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 3075 ANSWERED IN THE LOK SABHA ON 18.12.2025 ************* State wise Outstanding Debt (Rs Cr) FY2024-25 States/ UTs 77,600 Andhra Pradesh 1,131 Assam 14,002 Bihar 5,428 Chhattisgarh 258 Gujarat 20,311 Haryana 7,024 Himachal Pradesh 22,381 Jharkhand 47,993 Karnataka 17,638 Kerala 49,239 Madhya Pradesh 90,659 Maharashtra 745 Manipur 1,474 Meghalaya 17,411 Punjab 98,488 Rajasthan 1,88,411* Tamil Nadu 59,230 Telangana 0 Tripura 61,395 Uttar Pradesh 1,729 Uttarakhand 15,279 West Bengal 7,595 Private Sector 8,05,422 Total *: data also includes last year figures for TANGEDCo (Tamil Nadu) which was recently unbundled into 3 companies one of which is TNPDCL (distribution company of Tamil Nadu). Considering, Outstanding Debt of only TNPDCL i.e. Rs 1,01,782 Cr, total Outstanding Debt at National level would be: Rs 7,18,793 Cr. ************ANNEXURE-II ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 3075 ANSWERED IN THE LOK SABHA ON 18.12.2025 ************* State-wise Payables for Power Purchase States/Uts Payables (Days) As on March 31, 2024 As on March 31, 2025 Andhra Pradesh 105 105 Assam 41 62 Bihar 109 97 Chattisgarh 108 82 Delhi 277 389 Gujarat 3 4 Haryana 38 46 Himachal Pradesh 71 80 Jharkhand 420 384 Karnataka 177 152 Kerala 95 69 Madhya Pradesh 211 208 Maharashtra 104 111 Manipur 76 74 Meghalaya 212 193 Odisha 54 - Punjab 40 45 Rajasthan 63 51 Tamil Nadu 184 78 Telangana 310 295 Tripura 94 - Uttar Pradesh 153 156 Uttarakhand 39 61 West Bengal 159 172 All India 132 120 *****************ANNEXURE-III ANNEXURE REFERRED IN REPLY TO PARTS (b) & (c) OF UNSTARRED QUESTION NO. 3075 ANSWERED IN THE LOK SABHA ON 18.12.2025 ************* DISCOM wise AT&C loss target and achievement Sl. DISCOM AT&C Loss Targets under UDAY as per Achievement No. MoUs 15-16 16-17 17-18 18-19 19-20 15-16 16-17 17-18 18-19 19-20 1 Andaman & Nicobar 18.61 18.42 16.84 15.50 15 - - 30.28 23.43 23.34 PD 2 APEPDCL - 5.46 5.45 5.44 - 7.10 7.48 10.88 18.30 6.64 3 APSPDCL - 11.29 11.09 10.89 - 12.03 17.02 16.04 29.76 13.17 4 Arunachal PD 57.74 52.41 43 39 25 54.58 53.64 51.08 52.53 40.49 5 APDCL 22.49 19 17.75 16.1 15 26.02 20.11 17.64 20.19 23.39 6 NBPDCL 40 34 28 20 15 35.73 37.85 30.46 26.97 28.94 7 SBPDCL 44 38 30 22 15 47.87 46.81 35.53 37.81 48.29 8 CSPDCL 21 18.93 18 15 - 22.10 23.87 20.74 24.96 18.46 9 DNHPDCL - 7.97 7.5 7 - - - 6.55 5.45 3.56 10 Daman & Diu PD - 10.33 9.32 8.3 - - - 17.11 6.19 4.07 11 Goa PD 21.06 18.75 16.59 15 - 19.77 24.33 10.48 17.61 11.41 12 DGVCL 9.29 9.24 9.19 9.15 - 10.48 10.20 6.60 5.90 6.22 13 MGVCL 16 15.5 15 14.5 - 11.81 11.24 11.73 10.38 11.30 14 PGVCL 22 19.66 17.33 15 - 24.71 21.71 19.64 21.21 18.80 15 UGVCL 9.82 9.77 9.72 9.67 - 11.53 9.17 9.32 12.01 6.88 16 DHBVNL 26.44 23.10 19.16 15.34 - 26.44 23.10 19.16 15.34 16.37 17 UHBVNL 31.61 25.94 21.64 15.01 - 32.84 30.68 25.38 22.04 20.83 18 HPSEBL 13.85 13.5 13 12.75 - 9.68 11.48 11.08 12.46 13.33 19 JKPDD 56 46 35 25 15 58.75 59.96 53.67 49.94 60.46 20 JBVNL 35 28 22 15 - 33.34 40.83 44.72 28.33 37.13 21 BESCOM 16.76 12.94 14.61 14.36 14.08 13.88 14.91 13.17 15.79 17.91 22 CHESCOM 16.2 15.16 14.74 14.5 - 13.60 19.31 13.20 19.91 21.65 23 GESCOM 20.65 17.75 16.67 15 - 18.00 17.86 16.39 27.38 17.87 24 HESCOM 18.1 17.68 17.02 15 - 27.63 18.35 22.84 24.88 15.31 25 MESCOM 12.99 12.55 11.79 11.7 - 12.71 19.47 14.23 18.12 15.33 ……..2.- 2 - 26 KSEBL 11.57 11.45 11.23 11 - 12.40 13.42 12.81 9.10 13.12 27 - 13.9 10.32 10 - - - 19.15 26.82 13.69 Lakshadweep ED 28 MPMaKVVCL 28.65 22.09 19.19 17.2 15 31.09 34.29 39.00 45.02 37.17 29 MPPaKVVCL 22.38 20.4 18.41 16.27 15 25.06 19.08 18.69 25.28 20.94 30 MPPoKVVCL 22.65 19.72 17.73 15.59 15 26.10 28.00 34.84 40.38 33.89 31 MSEDCL 17.31 16.74 15.61 14.39 - 21.74 22.84 14.38 16.23 19.80 32 MSPDCL 44.2 25.15 18.7 15 - 31.72 33.01 27.46 25.26 23.30 33 MePDCL 36.5 32.51 27.5 21.5 15 45.98 38.81 41.19 35.22 31.67 34 Mizoram PD 32.17 27.38 23.76 20.3 15 35.18 24.98 16.16 16.20 20.66 35 Nagaland PD - 70 39 32 24 33.44 38.50 41.36 65.73 64.79 36 Puducherry PD 19.88 19 15 12 - 22.43 21.34 19.19 19.77 18.45 37 PSPCL 16.16 15.30 14.50 14 - 15.88 14.46 17.31 11.28 14.35 38 AVVNL 24 20 17.5 15 - 27.66 25.19 23.14 23.37 22.08 39 JdVVNL 22.4 18 16.5 15 - 29.67 26.17 23.49 35.20 38.26 40 JVVNL 28 22 18.5 15 - 35.87 29.79 25.19 25.73 27.83 41 Sikkim PD 37.13 29.5 25.94 15 - 43.89 35.62 32.48 41.83 28.77 42 TANGEDCO 14.58 14.06 13.79 13.5 - 16.83 18.23 19.47 17.86 15.00 43 TSNPDCL - 11.90 10.95 10 - 17.41 16.19 24.74 28.63 35.26 44 TSSPDCL - 12.68 11.3 9.9 - 12.64 14.77 17.16 13.79 15.57 45 TSECL 33.8 30 25 20 15 32.68 28.95 30.04 38.03 35.71 46 DVVNL 35.94 30.3 24.83 20.44 15.35 43.13 40.62 38.89 37.12 39.75 47 KESCO 35.25 29.44 24.11 19.37 14.45 28.16 25.10 22.52 16.49 15.49 48 MVVNL 33.13 27.8 23.2 19.45 14.89 44.58 47.27 45.29 40.62 34.14 49 PaVVNL 24.63 22.99 20.63 17.53 14.01 27.12 29.73 25.97 22.27 18.64 50 PuVVNL 38.87 34.19 26.92 20.65 15.49 51.14 53.19 47.89 39.64 34.24 51 UPCL 17 16 15 14.5 - 18.01 16.68 16.34 17.45 20.35 *************

Continue your research