Lok Sabha Question No. 2109 (UNSTARRED), answered on 2026-02-12
Subject: Financial Stress of DISCOMs
Ministry: POWER
Asked by: Ms Kangna Ranaut

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2109 ANSWERED ON 12.02.2026

## FINANCIAL STRESS OF DISCOMs

2109.  MS KANGNA RANAUT:

Will the Minister of POWER

be pleased to state:

(a)  the  present  financial  position  of  Power  Distribution  Companies  (DISCOMs)  in  the country,  including  broad  indicators  such  as  Aggregate  Technical  and  Commercial (AT&C) losses, outstanding dues and accumulated losses;

(b) the steps and schemes undertaken by the Government to address the financial stress of DISCOMs including reforms related to tariff rationalisation, loss reduction, payment discipline and operational efficiency;

(c)  the  progress  achieved  so  far  under  these  initiatives  including  improvements  in financial performance, reduction in losses and enhancement of service delivery; and

(d)  the  further  measures  proposed  by  the  Government  to  ensure  long-term  financial stability and viability of DISCOMs while safeguarding consumer interests?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a):  As  per  the  PFC's  14 th  Annual  Integrated  Rating  and  Ranking  report  on  Power Distribution Utilities, the DISCOM-wise AT&C loss, accumulated surplus/loss and total borrowings as on 31.03.2025 are placed at Annexure.

(b) to (d): (i) Government of India has been supporting the States to improve the financial viability  of  their  distribution  utilities  through  various  initiatives.  Some  of  the  key initiatives taken are as under:

- i. Revamped Distribution  Sector  Scheme  (RDSS)  has  been  launched  in  the  year 2021 with the objective of improving the quality and reliability of supply of power through a financially sustainable and operationally efficient distribution sector. The release of funds under the scheme is linked to performance of the States/ distribution utilities against financial and operational parameters.
- ii. 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.

………2.

- iii. Additional  Prudential  Norms  have  been  laid  down  for  sanctioning  of  loans  to State-owned power utilities based on performance of power distribution utilities against prescribed conditions.
- iv. 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.
- v. Rules and Standard Operating Procedure have been issued for proper subsidy accounting and their timely payment.
- vi. To improve payment discipline in the power sector value chain, Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 were promulgated, 2022 which entail obligations upon the DISCOMs to clear their legacy dues as existing on 03.06.2022 in a phased manner and time bound clearance of current dues.

(ii)   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 while the national Average Cost of Supply - Average Revenue Realized (ACS-ARR) gap has narrowed from Rs. 0.69/kWh to Rs. 0.06/kWh. These collective efforts have also resulted in DISCOMs achieving a profit after tax (PAT) of Rs 2,701 crore for the first time.

(iii)   Financial liabilities of State owned distribution utilities are the contingent liabilities of the respective State Government and need to be recognized as such. In order to ensure long-term financial stability for DISCOMs while safeguarding consumer interests, various measures have been envisaged in the draft National Electricity Policy (NEP) 2026, and Electricity (Amendment) Bill 2025 such as making it mandatory for Electricity Regulatory Commissions (ERCs) to determine cost-reflective tariffs, linking tariffs to a suitable index for  automatic annual  revision which operates if no tariff  order is passed by the State Commission, strengthening of dispute resolution mechanism to reduce burden on ERCs and  enable  faster  dispute  resolution,  flexibility  to  State  Governments  to  continue  to support  specific  consumer  categories  by  providing  advance  subsidies  on  their  behalf ensuring that no consumer group is unduly burdened etc.

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## ANNEXURE

## ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 2109 ANSWERED IN THE LOK SABHA ON 12.02.2026

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## DISCOM wise financial and operational parameters as on 31.03.2025

| State/ DISCOM             |   AT&C Loss (%) | ACS-ARR Gap (Rs./kWh)   | Accumulated Surplus/ (Loss) (RsCr)   | Total Borrowings (Rs Cr)   |
|---------------------------|-----------------|-------------------------|--------------------------------------|----------------------------|
| State Sector              |           15.4  | 0.11                    | (6,77,561)                           | 7,11,402                   |
| Andaman & Nicobar Islands |           24.14 | 2.22                    | -                                    | -                          |
| Andaman & Nicobar PD      |           24.14 | 2.22                    | -                                    | -                          |
| Andhra Pradesh            |            7.87 | (0.15)                  | (29,420)                             | 77,583                     |
| APCPDCL                   |            7.95 | (0.62)                  | (9,688)                              | 21,204                     |
| APEPDCL                   |            7.7  | (0.02)                  | (7,155)                              | 20,693                     |
| APSPDCL                   |            7.99 | (0.01)                  | (12,577)                             | 35,687                     |
| Arunachal Pradesh         |           46.2  | 0.00                    | -                                    | -                          |
| Arunachal PD              |           46.2  | 0.00                    | -                                    | -                          |
| Assam                     |           15.44 | (0.26)                  | (1,028)                              | 1,131                      |
| APDCL                     |           15.44 | (0.26)                  | (1,028)                              | 1,131                      |
| Bihar                     |           15.51 | (0.41)                  | (16,526)                             | 14,002                     |
| NBPDCL                    |           14.49 | (0.57)                  | (4,917)                              | 6,509                      |
| SBPDCL                    |           16.35 | (0.28)                  | (11,608)                             | 7,494                      |
| Chhattisgarh              |           14.25 | (0.19)                  | (10,423)                             | 5,428                      |
| CSPDCL                    |           14.25 | (0.19)                  | (10,423)                             | 5,428                      |
| Delhi                     |            8.36 | (0.86)                  | -                                    | -                          |
| NDMC                      |            8.36 | (0.86)                  | -                                    | -                          |
| Goa                       |           10.39 | 0.20                    | -                                    | -                          |
| Goa PD                    |           10.39 | 0.20                    | -                                    | -                          |
| Gujarat                   |            8.25 | (0.40)                  | 7,355                                | 258                        |
| DGVCL                     |            4.26 | (0.46)                  | 2,507                                | 26                         |
| MGVCL                     |            8.37 | (0.24)                  | 877                                  | 9                          |
| PGVCL                     |           12.73 | (0.44)                  | 2,276                                | 208                        |
| UGVCL                     |            6.16 | (0.33)                  | 1,695                                | 15                         |
| Haryana                   |           11.76 | 0.10                    | (27,915)                             | 20,311                     |
| DHBVNL                    |           12.2  | 0.03                    | (13,052)                             | 12,099                     |
| UHBVNL                    |           11.12 | 0.20                    | (14,862)                             | 8,213                      |
| Himachal Pradesh          |           19.44 | 0.23                    | (3,391)                              | 7,024                      |
| HPSEBL                    |           19.44 | 0.23                    | (3,391)                              | 7,024                      |
| Jharkhand                 |           28.19 | 0.95                    | (20,512)                             | 22,381                     |
| JBVNL                     |           28.19 | 0.95                    | (20,512)                             | 22,381                     |
| Karnataka                 |           11.92 | 0.69                    | (34,980)                             | 47,993                     |
| BESCOM                    |           12.5  | 1.21                    | (13,819)                             | 22,611                     |

| CHESCOM        |   8.76 | 0.36   | (4,064)    | 5,410    |
|----------------|--------|--------|------------|----------|
| GESCOM         |  13.48 | 0.10   | (5,661)    | 6,147    |
| HESCOM         |  12.14 | 0.23   | (11,398)   | 12,251   |
| MESCOM         |  10.02 | (0.00) | (37)       | 1,575    |
| Kerala         |   6.61 | (0.17) | (38,648)   | 17,638   |
| KSEBL          |   6.61 | (0.17) | (38,648)   | 17,638   |
| TCED           |   6.94 | (0.13) | -          | -        |
| Ladakh         |  26.82 | (0.89) | -          | -        |
| Ladakh PD      |  26.82 | (0.89) | -          | -        |
| Madhya Pradesh |  22.76 | (0.04) | (71,394)   | 49,239   |
| MPMaKVVCL      |  29.6  | 0.22   | (30,900)   | 18,176   |
| MPPaKVVCL      |  12.78 | (0.36) | (12,503)   | 14,184   |
| MPPoKVVCL      |  26.66 | 0.02   | (27,992)   | 16,878   |
| Maharashtra    |  17.69 | 0.56   | (35,671)   | 90,659   |
| BEST           |   5.07 | 0.60   | -          | -        |
| MSEDCL         |  18.09 | (0.70) | (35,671)   | 90,659   |
| Manipur        |  12.9  | (0.20) | (290)      | 745      |
| MSPDCL         |  12.9  | (0.20) | (290)      | 745      |
| Meghalaya      |  17.52 | 0.13   | (4,962)    | 1,474    |
| MePDCL         |  17.52 | 0.13   | (4,962)    | 1,474    |
| Mizoram        |  32.31 | (0.34) | -          | -        |
| Mizoram PD     |  32.31 | (0.34) | -          | -        |
| Nagaland       |  48.86 | (0.50) | -          | -        |
| Nagaland PD    |  48.86 | (0.50) | -          | -        |
| Puducherry     |  14.72 | (0.64) | -          | -        |
| Puducherry PD  |  14.72 | (0.64) | -          | -        |
| Punjab         |  19.21 | (0.30) | (3,404)    | 17,411   |
| PSPCL          |  19.21 | (0.30) | (3,404)    | 17,411   |
| Rajasthan      |  15.18 | (0.04) | (90,303)   | 98,488   |
| AVVNL          |   9.22 | (0.45) | (25,563)   | 26,126   |
| JdVVNL         |  21.42 | 0.02   | (34,689)   | 36,793   |
| JVVNL          |  13.75 | 0.18   | (30,052)   | 35,569   |
| Sikkim         |  21.84 | 0.33   | -          | -        |
| Sikkim PD      |  21.84 | 0.33   | -          | -        |
| Tamil Nadu     |  10.96 | (0.19) | (1,19,153) | 1,01,782 |
| TNPDCL         |  10.96 | (0.19) | (1,19,153) | 1,01,782 |
| Telangana      |  19.84 | 0.27   | (69,741)   | 59,230   |
| TSNPDCL        |  23.22 | 0.53   | (21,399)   | 21,885   |
| TSSPDCL        |  18.51 | 0.17   | (48,342)   | 37,345   |
| Tripura        |  29.61 | 1.40   | (991)      | 842      |
| TSECL          |  29.61 | 1.40   | (991)      | 842      |
| Uttar Pradesh  |  19.54 | 0.73   | (1,00,858) | 61,395   |

| DVVNL                   |   19.70 | 1.03   | (33,974)   | 16,412   |
|-------------------------|---------|--------|------------|----------|
| KESCO                   |   14.29 | 1.09   | (5,232)    | 2,243    |
| MVVNL                   |   17.7  | 1.11   | (25,236)   | 14,338   |
| PaVVNL                  |   11.91 | (0.29) | (8,782)    | 6,562    |
| PuVVNL                  |   30.7  | 1.30   | (27,634)   | 21,840   |
| Uttarakhand             |   15.08 | 0.06   | (5,482)    | 1,729    |
| UPCL                    |   15.08 | 0.06   | (5,482)    | 1,729    |
| West Bengal             |   17.17 | (0.03) | 174        | 14,658   |
| WBSEDCL                 |   17.17 | (0.03) | 174        | 14,658   |
| Private Sector          |   10.05 | (0.64) | 30,351     | 14,975   |
| Delhi                   |    6.48 | (1.13) | 22,184     | 2,914    |
| BRPL                    |    6.7  | (0.89) | 12,892     | 894      |
| BYPL                    |    7.15 | (0.95) | 5,650      | 701      |
| TPDDL                   |    5.7  | (1.58) | 3,642      | 1,319    |
| Gujarat                 |    3.63 | (0.42) | 3,892      | 3,562    |
| Torrent Power Ahmedabad |    3.8  | (0.30) | 3,206      | 3,354    |
| Torrent Power Surat     |    3.24 | (0.67) | 686        | 208      |
| Maharashtra             |    4.99 | (2.04) | 1,245      | 3,818    |
| AEML                    |    4.99 | (2.04) | 1,245      | 3,818    |
| Odisha                  |   17.81 | 0.18   | 1,263      | 4,531    |
| TPNODL                  |   12.51 | (0.06) | 480        | 1,006    |
| TPSODL                  |   23.36 | 0.82   | 219        | 1,498    |
| TPWODL                  |   17.64 | 0.36   | 301        | 1,093    |
| TPCODL                  |   19.11 | (0.09) | 262        | 933      |
| Uttar Pradesh           |    8.48 | (0.15) | 1,561      | 0        |
| NPCL                    |    8.48 | (0.15) | 1,561      | 0        |
| West Bengal             |    4.68 | 0.19   | 205        | 151      |
| IPCL                    |    4.68 | 0.19   | 205        | 151      |
| Grand Total             |   15.04 | 0.06   | (6,47,210) | 7,26,378 |

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