Discoms may incur `75,000 cr loss in FY22

Chennai: Power distribution companies, or discoms, are estimated to have suffered a loss of Rs 90,000 crore in FY21, according to Niti Aayog. It expects the loss to be Rs 75,000 crore in FY22.

A Niti Aayog report said the losses of the discoms declined from a peak of Rs 76,878 crore in 2011-12 to Rs 33,596 crore in 2017-18. However, losses increased sharply in 2018-19. The pandemic and the subsequent lockdown further damaged discoms’ finances. Due to its adverse impact, the electricity demand of commercial and industrial customers also suffered. It is projected that the total loss could be Rs 75,000 crore in FY 2022. This ultimately will result in a high level of debt and overdue payments to generation companies. The overdue amount to them stood at Rs 67,917 crore in FY21.