In fiscal 2020-21, it is estimated that the power distribution companies (discoms) have a loss of Rs 90,000 crore. But this estimate is not correct, the Union Power Ministry said. The ministry said the damage was being shown to be exaggerated.
What the Ministry said: According to the ministry, the speculation began after the rating agency ICRA published a report on the power sector in March 2021. This report shows a loss of Rs 50,000 crore in 2018-19. At the same time, the report cited a loss of Rs 60,000 crore in 2019-20. On this basis, some of the losses or losses of discoms in 2020-21 are reported to be Rs 90,000 crore.
The report cited an increase of $ 30,000 crore in dues from debtors in March 2020. This increase of Rs 30,000 crore is a cash flow problem, the ministry said. This is directly added to the disadvantages of discoms.
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What is the reason: Such speculation is also attributed to a decrease in power sales by 2020-21 due to lockdown due to Kovid-19.