The union government has said there is no requirement for a liquidation scheme for state electricity distribution companies (DISCOMS), citing significant improvement in their payment discipline under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022.
In a written reply in the Lok Sabha, the Minister of State for Power, Shripad Naik, said that 13 states had reported arrears amounting to ₹1,39,947 crore as on June 3, 2022. These dues, including late payment surcharge, were treated as legacy arrears and rescheduled into equated monthly instalments (EMI), beginning August 2022, under the LPS Rules, 2022.
According to the minister, 43 EMIs have been paid by the concerned distribution utilities so far. Some utilities also made pre-payments of legacy dues. As a result, outstanding legacy dues have reduced to ₹4,109 crore as on February 10, 2026.
However, current overdues as reflected on the PRAAPTI portal stood at ₹21,178 crore as on the same date, taking total overdues (current plus legacy) to ₹25,287 crore.
Suppliers include generating, transmission and trading companies.
“In view of credible improvement in the payment of their dues by the distribution utilities, there does not seem to be any requirement of a liquidation scheme for the same,” Naik stated in the Lok Sabha. The LPS Rules, 2022 were notified on June 3, 2022 to enforce financial discipline in the power sector and prevent accumulation of unpaid dues to generators and transmission companies.
