India’s Reliance Infrastructure to recover $2.44 billion in unpaid power dues
Reliance Infrastructure (RLIN.NS) announced on Friday that its power distribution companies operating in New Delhi will recover 214.13 billion rupees ($2.44 billion) in unpaid dues from consumers. This follows a recent Supreme Court ruling that upheld the companies’ claims.
The unpaid dues originate from historical tariff shortfalls, where electricity prices approved by regulators did not fully cover supply costs, News.Az reports, citing Reuters.
Reliance Infrastructure, part of the Anil Ambani-led Reliance Group, will recover the amount over four years starting April 2024, likely resulting in higher electricity tariffs for consumers.
The Supreme Court’s directive on Wednesday ordered electricity regulators across India to clear deferred costs and unpaid dues owed to power distribution companies. It also instructed state regulators to conduct audits and submit recovery plans.
In New Delhi, three distribution companies—including a unit of Tata Power (TTPW.NS)—accumulated 272 billion rupees in unpaid dues by March 2024, according to court documents. The Delhi Electricity Regulatory Commission will oversee the recovery process, which is expected to increase electricity bills for residents in the capital.
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