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

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  • Kamaljit Singh
  • Simmi Vashishtha

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.

Suggested Citation

  • Kamaljit Singh & Simmi Vashishtha, 2021. "Liquidity infusion under Atmanirbhar Bharat scheme: A strategy to revive Indian power discoms," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 79-89.
    • Handle: RePEc:bas:econth:y:2021:i:5:p:79-89
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    References listed on IDEAS

    as
    1. Singh, Kamaljit & Vashishtha, Simmi, 2019. "Empowering the power sector through UDAY: A study of Haryana," MPRA Paper 99266, University Library of Munich, Germany.
    2. Madurai Elavarasan, Rajvikram & Shafiullah, GM & Raju, Kannadasan & Mudgal, Vijay & Arif, M.T. & Jamal, Taskin & Subramanian, Senthilkumar & Sriraja Balaguru, V.S. & Reddy, K.S. & Subramaniam, Umashan, 2020. "COVID-19: Impact analysis and recommendations for power sector operation," Applied Energy, Elsevier, vol. 279(C).
    3. Das, Soumya Deep & Srikanth, R., 2020. "Viability of power distribution in India – Challenges and Way Forward," Energy Policy, Elsevier, vol. 147(C).
    4. Sheoli Pargal & Sudeshna Ghosh Banerjee, 2014. "More Power to India : The Challenge of Electricity Distribution," World Bank Publications - Books, The World Bank Group, number 18726, December.
    5. Verma, Mandhir Kumar & Mukherjee, V. & Kumar Yadav, Vinod & Ghosh, Santosh, 2020. "Indian power distribution sector reforms: A critical review," Energy Policy, Elsevier, vol. 144(C).
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    JEL classification:

    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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