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.
Raj is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.