Power shock: UDAY scheme fared even worse?

The UDAY scheme could have had even lesser efficacy than claimed by the government in nursing the stressed electricity discoms back to health. Though data put out by the states and compiled by the Union power ministry showed a reduction in the combined financial losses of discoms from Rs 51,562 crore in FY16 to Rs 15,132 crore in FY18, state-run Power Finance Corporation (PFC), the principal lender to these entities, has now found that their combined losses stood at Rs 33,365 crore in FY18, more than double the level reported earlier (see chart).

It may be noted that the states themselves have reported a spike in discom losses to Rs 28,036 crore in FY19 and Icra projected the FY20 losses of these entities to be slightly higher at Rs 30,000 crore, pending release of official data.

financial express
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