At the heart of problems plaguing the power sector for years now is the distribution of electricity. It is estimated that more than Rs. 3.5 lakh crore are owed to discoms in terms of receivables, and more than Rs. 1.4 lakh crore are owed by discoms to generators. This year debt levels of discoms are in terms of receivables, and more than Rs. 1.4 lakh crore are owed by discoms to generators. This year debt levels of discoms are expected to rise beyond Rs. 2.6 lakh crore and appear to be without a clear path to resolution. The aftermath of such factors may impact the approximately Rs. 1.15 lakh crore of Non-Performing Assets(NPAs) hanging in balance.
This has resulted in a balance sheet problem together with a creditworthiness crisis that threatens to deteriorate the health of not only the power sector, but the financial sector as well.
Please click here to read the full article by Vishnu Sudarsan, Abhishek Munot, and Samikrith Rao, published in Construction World Magazine.