Liquidity infusion under Atmanirbhar Bharat scheme: A strategy to revive Indian power discoms

Kamaljit Singh and Simmi Vashishtha

Economic Thought journal, 2021, issue 5, 79-89

Abstract: As a first tranche measure to fight the economic disruption of the lock-down and part of the strategy to revive India’s battered economy, a liquidity infusion for the power distribution companies was announced under the Atmanirbhar Bharat (self-reliant India) scheme. The present study aims to discuss the overdue, outstanding, and disputed amounts of the sixty-one power discoms from April 2020 to September 2020. The author pointed out that the amounts due by the discoms to generator companies have risen to Rs. 94,000 crores while the Indian government will provide only a total liquidity infusion of Rs. 90,000 crores for the needy electricity distribution companies. The payments owed by electricity utilities have risen to Rs. 1.24 lakh crore, which is more than 20 percent higher than for the same period last year. Subsequently, the debts of the discoms to generating companies are growing, making discoms unsustainable as unpaid power producers threaten to stop electricity supply to states.

JEL-codes: H74 M20 O21 (search for similar items in EconPapers)
Date: 2021
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