LIQUIDATION SCHEME FOR STATE ELECTRICITY DISTRIBUTION COMPANIES

• A time-bound EMI-based liquidation framework for legacy dues owed by State distribution licensees (Discoms) to GENCOs/TRANSCOs, operating through the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022.
• Aims to restore cash-flow discipline in the power sector and end the chronic stress that the UDAY (2015) scheme failed to fix.
• Relevant for UPSC GS-III (Infrastructure: Energy) and GS-II (Centre-State / regulatory governance).