IMPACTS OF COVID-19 ON THE ELECTRICITY SECTOR: HOW CAN STATES MAKE THE MOST OF THE STIMULUS ON OFFER?

The document details the financial distress caused by COVID-19 in India's electricity sector, specifically the revenue losses of DISCOMs and the payment delays affecting power producers. It outlines a stimulus package of INR 90,000 crore for DISCOMs and lists specific loan terms from PFC-REC, including a 10-year loan period and requirements for digital payment and smart meter installation. The briefing also highlights best practices in billing and collection adopted by states like Odisha, Gujarat, Bihar, and Rajasthan to mitigate losses.

• COVID-19 caused a general decline in power demand and a significant drop in revenue for distribution companies (DISCOMs), which was further exacerbated by government measures to support consumers. As of April 2020, overdue payments reached INR 110,835 crore, with the highest overdues occurring in Andhra Pradesh, Karnataka, Rajasthan, Telangana, Tamil Nadu, and Uttar Pradesh.
• DISCOMs face severe operational inefficiencies, with an average AT&C loss of 19.08% and an average ACoS-ARR gap of INR 0.41 per unit. Specifically, 23 DISCOMs reported AT&C losses exceeding the 15% limit, with 10 reporting losses above 30%.
• The government announced a stimulus package of INR 90,000 crore for DISCOMs. Additionally, PFC-REC loan terms include a 10-year loan period (with a maximum 3-year moratorium) and pre-commitment conditions such as enabling digital payments, installing smart meters in government departments, and ensuring monthly or quarterly subsidy payments from state governments.
• Thermal power producers (TPPs) and renewable energy producers (REPs) both suffered from delayed payments from DISCOMs. TPPs were supported by loan payment moratoriums and the mandate of fixed charges, while REPs received extensions on completion dates and the reinforcement of their 'must-run' status.

APA

International Institute for Sustainable Development (2020). IMPACTS OF COVID-19 ON THE ELECTRICITY SECTOR: HOW CAN STATES MAKE THE MOST OF THE STIMULUS ON OFFER? https://www.iisd.org/sites/default/files/2020-07/covid-19-electricity-sector-india.pdf

Chicago

International Institute for Sustainable Development. IMPACTS OF COVID-19 ON THE ELECTRICITY SECTOR: HOW CAN STATES MAKE THE MOST OF THE STIMULUS ON OFFER? 2020. https://www.iisd.org/sites/default/files/2020-07/covid-19-electricity-sector-india.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=IMPACTS OF COVID-19 ON THE ELECTRICITY SECTOR: HOW CAN STATES MAKE THE MOST OF THE STIMULUS ON OFFER? |date=30 June 2020 |url=https://www.iisd.org/sites/default/files/2020-07/covid-19-electricity-sector-india.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2020impacts, author = {{International Institute for Sustainable Development}}, title = {{IMPACTS OF COVID-19 ON THE ELECTRICITY SECTOR: HOW CAN STATES MAKE THE MOST OF THE STIMULUS ON OFFER?}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = jun, url = {https://www.iisd.org/sites/default/files/2020-07/covid-19-electricity-sector-india.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }