Lok Sabha Question No. 6364 (UNSTARRED), answered on 2026-04-02
Subject: Impact of Electricity Rules on improving Payment Discipline among DISCOMs
Ministry: POWER
Asked by: Shri Ravindra Shukla Alias Ravi Kishan, Shri Manish Jaiswal

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.6364 ANSWERED ON 02.04.2026

## IMPACT OF ELECTRICITY RULES ON IMPROVING PAYMENT DISCIPLINE AMONG DISCOMS

6364.  SHRI MANISH JAISWAL: SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:

Will the Minister of POWER be pleased to state:

- (a) the impact of the Electricity (Late Payment Surcharge and Related Matters) Rules on improving payment discipline among Power Distribution Companies (DISCOMs);

(b) the total amount of outstanding dues of DISCOMs to power generation companies that has been cleared since the implementation of these rules;

- (c) whether the Government has reviewed the financial stability of the power sector and the status of power supply infrastructure in various regions including districts such as Hazaribagh and Ramgarh in Jharkhand and if so, the details thereof; and
- (d) the  measures  taken  to  ensure  financial  sustainability  of  the  power  sector  and timely payments across the electricity supply chain?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) & (b) : As a result of the Electricity (Late Payment Surcharge and Related Matters) Rules,  2022  (LPS  Rules),  the  outstanding  legacy  dues  have  reduced  from  Rs  1,39,947 crore as on 03.06.2022 to. Rs. 3,330 crore as on 27.03.2026.  DISCOMs are also paying their current dues in time to avoid regulations under the rule.

(c) & (d): Electricity being a concurrent subject, supply and distribution of electricity to all consumers is within the purview of the respective State Government/ distribution utility. Government of India (GoI) supplements the efforts of the States through various schemes to help achieve the objective of providing quality and reliable supply of power to all consumers. This includes works amounting to Rs 1.85 lakh crore executed under earlier  schemes  of  DDUGJY,  Integrated  Power  Development  Scheme  (IPDS),  and SAUBHAGYA, including Rs 11,431 crore in the State of Jharkhand, including districts such as Hazaribagh and Ramgarh.

………2.

Now  under  Revamped  Distribution  Sector  Scheme  (RDSS),  launched  with  the objective of improving the quality and reliability of power supply to consumers through a financially sustainable and  operationally efficient distribution sector, distribution infrastructure works including smart metering works worth Rs. 2.83 lakh crore have been sanctioned. This includes works amounting to Rs 4,326 crore for the State of Jharkhand (district  wise  details  are  enclosed  at  Annexure).  Financial  support  under  RDSS  is contingent upon performance of the utilities against various operational and financial parameters.

In addition to LPS Rules and RDSS, GoI has been supporting the distribution utilities to improve  their operational performance  and  financial viability through  various initiatives. Some of the key initiatives taken are as under:

- i. Additional borrowing space of 0.5% of Gross State Domestic Product (GSDP) has been  made  available  to  State  Governments,  which  is  conditional  upon  them undertaking specific reforms in the power sector including financial performance of the distribution utilities.
- ii. Additional Prudential Norms have been laid down for sanctioning of loans to Stateowned power utilities based on performance of power distribution utilities against prescribed conditions.
- iii. Rules for implementation of Fuel and Power Purchase Costs Adjustment (FPPCA) and cost-reflective tariff have been framed so as to ensure that all prudent costs for supply of electricity are passed through.
- iv. Rules  and  Standard  Operating  Procedure  have  been  issued  for  proper  subsidy accounting and their timely payment.

With concerted efforts of Central and State Governments, the Aggregate Technical and Commercial (AT&C) losses at national level have reduced from 21.91% in FY21 to 15.04%  in  FY25  and  the  gap  between  Average  Cost  of  Supply  and  Average  Revenue Realized (ACS-ARR) has narrowed from Rs. 0.69/kWh to Rs. 0.06/kWh.

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ANNEXURE ANNEXURE REFERRED IN REPLY TO PARTS (c) & (d) OF UNSTARRED QUESTION NO. 6364 ANSWERED IN THE LOK SABHA ON 02.04.2026

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District wise sanctioned cost of works* in Jharkhand under RDSS

| District            | Sanctioned cost (Rs crore)   |
|---------------------|------------------------------|
| Bokaro              | 220                          |
| Chatra              | 72                           |
| Deoghar             | 218                          |
| Dhanbad             | 298                          |
| Dumka               | 78                           |
| East Singhbhum      | 469                          |
| Garhwa              | 195                          |
| Giridih             | 234                          |
| Godda               | 110                          |
| Gumla               | 141                          |
| Hazaribagh          | 201                          |
| Jamtara             | 97                           |
| Khunti              | 45                           |
| Koderma             | 102                          |
| Latehar             | 78                           |
| Lohardaga           | 89                           |
| Pakur               | 82                           |
| Palamu              | 276                          |
| Ramgarh             | 214                          |
| Ranchi              | 622                          |
| Sahebganj           | 91                           |
| Saraikela Kharsawan | 102                          |
| Simdega             | 90                           |
| West Singhbhum      | 150                          |
| Sub Total           | 4,272                        |
| PMA charges         | 54                           |
| Total               | 4,326                        |

*Including smart metering works.

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