New Delhi: State power distribution companies (discoms) will see their operating losses reduce by a third to nearly Rs 8,000-10,000 crore this fiscal (FY26) from an estimated Rs 12,000-15,000 crore last fiscal, a report said on Monday.

Improving operational efficiency, approved tariff hikes in some key states, and a slight moderation in the average power purchase cost (APPC) would drive the development.

“Narrowing operating losses have slowed the pace of debt addition for discoms, leading to some improvement in their credit metrics,” Crisil Ratings said in its report.

However, their dependence on state subsidies continues, with the overall debt burden remaining high and further improvement in average revenue realised (ARR) will be required to reach a higher level of cash accruals to se

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