Power sector's legacy dues fall to Rs 4,109 cr in Feb

Legacy dues in the power sector have been brought down from Rs 1.40 lakh crore in June 2022 to just Rs 4,109 crore in February, supported by the government's initiatives, Parliament was informed on Thursday. The government notified the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules, 2022) on June 3, 2022. Under these rules, all the dues, including late payment surcharges, up to June 3 2022, were considered as arrears, which were to be rescheduled, and the distribution licensee shall pay such dues in equated monthly instalments (EMIs), starting from August 2022, Union Minister Shripad Naik said in a written reply to the Lok Sabha. A total of 13 states reported arrears amounting to Rs 1,39,947 crore as of June 3, 2022, and rescheduled them into EMIs, the Minister of State for Power informed the Lower House. As a result of these measures, 43 EMIs have been paid by the distribution utilities concerned, including pre-payment of legacy dues by some utilities, and the outstanding legacy dues have reduced to Rs 4,109 crore as of February 10, 2026, he said. Total overdues (current + legacy) stood at Rs 25,287 crore, the minister said.