Losses of state-owned power distribution companies (discoms) are seen to be around Rs 58,000 crore in the current fiscal because of lower revenue generation amid muted power demand due to the lockdown, analysts at Crisil Ratings said. Losses in FY20 were to the tune of around Rs 30,000 crore, according to an estimate.
Discoms are also expected to end up owing lenders a staggering Rs 4.5 lakh crore by the end of this fiscal, recording a 30% annual rise, and deteriorating their credit profiles.
It was difficult for discoms to continue meter reading exercises and collect payments from consumers amid the lockdown. On top of that, muted industrial operations took a toll on their finances as these high-paying consumer segments contribute more than 70% of discoms’ revenue, but use about 50% of the overall electricity supplied.