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New loan scheme for discoms shows little impact on on clearance of dues

States' pending payments to distributors down just 4% since March 2020

power, grid, discoms, electricity
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In June 2020, Union Finance Minister Nirmala Sitharaman announced a special liquidity infusion scheme for the ailing power distribution sector

Shreya JaiJyoti Mukul New Delhi
Almost a year after it was launched, the special loan scheme for state-owned power distribution companies (discoms), part of the Atmanirbhar package, has had little impact on clearance of dues.
 
Though the dues discoms owe power generation and transmission companies have reduced by 23 per cent since March 2020, the dues state governments owe discoms have only decreased by a mere 4 per cent.
 
States owed discoms Rs 1.13 trillion as of March 31 in subsidies and payment for power they buy for their departments. These dues peaked at Rs 1.32 trillion as of June 30, 2020, because