Demonetization Helps DISCOMs Recover Close to Rs.28.75 Billion

March 3, 2017

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The demonetization program has proved to be a positive for India’s power distribution companies (DISCOMs). The Power Finance Corporation (PFC) stated that DISCOMs across the country were paid a total of Rs.28.75 billion (~$430.21 million) against pending electricity bill payments.

Electricity bill payments were one of the ways to utilize the defunct Rs.500 and Rs.1,000 notes. Power utilities clocked an aggregate 13.6 percent increase in collections between November 10 and December 15, 2016, stated a LiveMint report.

Overall, DISCOMs in India collected Rs.251.16 billion (~$3.75 billion) in payments in 2016, Rs.30.07 billion (~$450 million) more than the Rs.221.09 billion (~$3.3 billion) collected in 2015.

Mercom previously reported that the central government allowed the use of the old Rs.500 and Rs.1,000 notes to pay pending utility bills by its citizens, which will help DISCOMs due to their huge backlog of unpaid bills.

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