IMPACTS of C-19 on the ELECTRICITY SECTOR: HOW CAN STATES make the most of the stimulus on offer?

This briefing, based on a June 2020 virtual roundtable by CEEW and IISD, analyzes the impacts of COVID-19 on India's electricity sector. It details the financial distress of distribution companies (DISCOMs), the operational challenges faced by thermal and renewable energy producers, and the government's proposed recovery measures, including a stimulus package and loan terms from PFC-REC.

• COVID-19 caused a general decline in power demand and a significant reduction in revenue for distribution companies (DISCOMs), which was further complicated by government consumer support measures and a reluctance from several states to provide loan guarantees for payments to generators.
• As of April 2020, overdue amounts reached INR 110,835 crore, with the highest overdues occurring in Andhra Pradesh, Karnataka, Rajasthan, Telangana, Tamil Nadu, and Uttar Pradesh. Average AT&C losses across DISCOMs were 19.08%, with 23 DISCOMs exceeding the 15% limit, 18 exceeding 20%, and 10 exceeding 30%.
• Thermal power producers (TPPs) faced falling demand, delayed payments from DISCOMs, and coal producer losses. Policy responses included a moratorium on loan payments, mandated payment of fixed charges, and the encouragement of TPPs to utilize domestic supply.
• Renewable energy producers (REPs) experienced delays in project completion dates due to sourcing issues and uncertainty regarding demand. Government responses included reinforcing 'must-run' status and providing extensions for completion dates.
• The government announced a stimulus package of INR 90,000 crore for DISCOMs. Additionally, PFC-REC loan terms were established based on government receivables, featuring a 10-year loan period (including a maximum 3-year moratorium) and pre-commitment conditions such as enabling digital payments and installing smart meters in government departments.

APA

International Institute for Sustainable Development (n.d.). IMPACTS of C-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 C-19 on the ELECTRICITY SECTOR: HOW CAN STATES make the most of the stimulus on offer? n.d. 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 C-19 on the ELECTRICITY SECTOR: HOW CAN STATES make the most of the stimulus on offer? |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{internationalinstituteforsustainabledevelopmentndimpacts, author = {{International Institute for Sustainable Development}}, title = {{IMPACTS of C-19 on the ELECTRICITY SECTOR: HOW CAN STATES make the most of the stimulus on offer?}}, institution = {International Institute for Sustainable Development}, 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} }