MUMBAI: The external debt of state-owned electricity distribution companies (discoms) is set to increase to pre-UDAY levels of ₹2.6 lakh crore by the end of this fiscal, a note by credit ratings agency Crisil said today. Crisil’s report is based on an analysis of discoms in 15 states that account for 85% of the aggregate losses. After UDAY had been implemented, aggregate discom debt had fallen from ₹2.7 lakh crore in September 2015 to ₹1.9 lakh crore in FY16 and ₹1.5 lakh crore in FY17. This downward trajectory is now expected to reverse, moving up to ₹2.28 lakh crore in FY19 and ₹2.64 lakh crore in FY20. “Add to that the funding needs for budgeted capital expenditure, and the external debt of discoms would balloon to roughly ₹2.6 lakh crore by the end of FY20."

Source: Mint May 06, 2019 10:41 UTC