Modi urges states to expedite clearing power dues

02 Aug 2022 CW Team

Prime Minister Narendra Modi urged states to pay off power sector dues worth an estimated Rs 2.5 lakh crore, ruing the politics that has landed the sector in trouble in many states. “It is not the time for politics, it is time for a national policy,” Modi said in his message to states against the politicisation of the power distribution sector.

“In politics, people should have the courage, to tell the truth, but we see that some states try to avoid it. This thought process has pushed the power sector in many states into huge problems.”

The Prime Minister, who was launching a revamped power sector distribution scheme, said states owe about Rs 1 lakh crore to generation companies while state departments and local bodies have dues of Rs 60,000 crore to distribution companies. Subsidy payment arrears exceed Rs 76,000 crore, taking the total sector dues to about Rs 2.5 lakh crore.

“Companies responsible for activities ranging from the generation of electricity to its delivery have about Rs 2.5 lakh crore of money which is stuck,” Modi said, calling on states with dues to clear them as soon as possible. Modi said distribution sector losses in India are in double digits compared with single digits in developed countries.

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