NEW DELHI: With power consumption breaching the pre-Covid mark in September, power distribution companies (discom) are likely to have arrested the sharp increase in debt seen over the past few months.
According to data from government sources, discoms’ pending dues to power suppliers stood at a whopping Rs 1.33 lakh crore at the end of August —a whopping 37.7 per cent higher than last year. However, taken on a month-on-month basis, there has been a huge deceleration in the pace at which discoms were adding debt since March this year.
Compared to the amount of dues in July (Rs 1.3 lakh crore), discoms added just Rs 3,000-odd crore during August. A significant improvement from the Rs 19,250 crore added during April and May together. At the end of May, discom dues had stood at Rs 1.17 lakh crore.
However, things have begun improving since June, with economic activity recovering. “Q2 numbers were driven by improved power demand and generation, owing to the revival in the economic activities, especially in the Commercial & Industrial segment (C&I). Demand/generation across India fell marginally ~1.6 per cent/1.5 per cent in Q2FY21 (but) September 2020 witnessed a 2.7 per cent yoy rise in generation,” noted Emkay Securities.