New Delhi, February 12 The outstanding debt in the power sector has been reduced from ₹1.40 lakh crore in June 2022 to just ₹4,109 crore in February, thanks to government initiatives, Parliament was informed on Thursday.
The government notified the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules, 2022) on June 3, 2022.
Under these rules, all outstanding dues, including late payment surcharges, up to June 3, 2022, were considered as arrears, which were to be rescheduled, and the distribution licensee shall pay such dues in equated monthly installments (EMIs), starting from August 2022, Union Minister Shripad Naik said in a written reply to the Lok Sabha.
A total of 13 states reported arrears amounting to ₹1,39,947 crore as of June 3, 2022, and they were rescheduled into EMIs, the Minister of State for Power informed the Lower House.
As a result of these measures, 43 EMIs have been paid by the concerned distribution utilities, including the pre-payment of legacy dues by some utilities, and the outstanding legacy dues have reduced to ₹4,109 crore as of February 10, 2026, he said.
The total outstanding amount (current + legacy) stood at ₹25,287 crore, the minister said.