POWER

COVID-19 turns power sector crisis even worse, dues soar

It has been five years since the Ujjwal Discom Assurance Yojana (UDAY) was launched, a scheme meant to stanch the bleeding at the discom level and nurture the power sector back to health. But recent audit reports show that even as far back as FY19, discom losses had ballooned far more than earlier estimated.

With FY20 unlikely to have seen any improvement, the current pandemic has only pushed the sector firmly back into deep crisis territory. According to government data, discom dues have soared during the lockdown with April and May accounting for a nearly 20 per cent, or Rs 19,250 crore, increase in overdue payments.

The Centre has rolled out a Rs 90,000 crore relief program to help power distribution companies (discoms) pay their dues to generators (gencos), but many analysts believe that this is little more than a band-aid.

Source
New Indian Express
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