Ministry of Power:Outstanding Electricity Dues Decline; No Liquidation Scheme Required for State Discoms

The Government of India has reported a substantial reduction in legacy electricity dues following the implementation of the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules, 2022), notified on 3rd June 2022. Under these rules, all outstanding dues, including late payment surcharges up to 3rd June 2022, were classified as arrears and were required to be rescheduled by distribution utilities into equated monthly instalments (EMIs) starting from August 2022.

As of 3rd June 2022, 13 states had reported arrears totaling ₹1,39,947 crore, which were subsequently restructured into EMIs.

According to the latest data, the distribution utilities have paid 43 EMIs, including pre-payment of some legacy dues, reducing the outstanding legacy dues to ₹4,109 crore as of 10th February 2026. The improvement in payments suggests that there is currently no need for a separate liquidation scheme.

State-wise Legacy and Current Dues (as on 10.02.2026)

• Andhra Pradesh: Total overdues across four discoms stand at ₹1,983 crore.
• Gujarat: Gujarat Urja Vikas Nigam Limited reported ₹6,546 crore in outstanding dues.
• Karnataka: Legacy and current overdues across five distribution companies total ₹3,012 crore.
• Maharashtra: Maharashtra State Electricity Distribution Co. Ltd. shows total overdues of ₹2,932 crore.
• Uttar Pradesh: UP Power Corporation Ltd. has ₹2,938 crore outstanding.
• Other states, including Delhi, Rajasthan, Tamil Nadu, Telangana, and West Bengal, also reported significantly reduced dues, reflecting the effectiveness of the EMI-based restructuring.

Overall, the total outstanding dues to suppliers, which include generating, transmission, and trading companies, now stand at ₹25,287 crore, down from ₹1,39,947 crore in June 2022.

The information was shared by Shri Shripad Naik, Minister of State, Ministry of Power, in a written reply to the Lok Sabha today.

This decline underscores the credible improvement in discom payment behavior and highlights the positive impact of the LPS Rules, 2022, in ensuring timely settlements of electricity dues across states.