Five states, accounting for the bulk of power dues, have agreed on liquidatingabout Rs 900 billion in outstanding payments and subsidy liabilities of their electricity distribution companies that are on the verge of collapse.
These five states are Rajasthan, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, and Telangana, and constitute nearly 65 per cent of the overdue payments to power projects. The states will also assume nearly Rs 450 billion losses of these discoms under a central scheme in order to address power sector stress. These five states have submitted their cabinet-approved revival measures that include tariff revisions among others. Further, discussions for a similar revival roadmap are also under process with several other states. The measures are set to ensure payments to discoms amid soaring electricity demand that has forced states like Andhra Pradesh and Maharashtra to issue official orders on load shedding as well as power holidays.