Coronavirus lockdown to hurt finances of generators, discoms: Study

The financial profile of the state distribution utilities or discoms has not seen an improvement in 2019-20

The nationwide lockdown to contain the spread of Covid-19 pandemic is set to magnify the already stressed finances of electricity generators and distribution companies (discoms), a study said.

As a fall-out of the lockdown, the finances of the discoms are impacted since they are not able to collect payments from consumers and in turn pay to the generators.

“State governments would further delay the release of subsidies. Given that usually most of the payments for past supply are collected/made towards the end of the financial year (March), the delays would have significant financial implications. Although since August 2019, states have