Liquidity Position FY23

The sector continued to suffer from liquidity crunch, with discoms’ current liabilities (INR ~7.03 lakh Crore) exceeding their overall current assets and amounting to nearly twice the value of their current liquid assets (INR ~3.14 lakh Crore). The sector’s Adjusted Quick Ratio was ~0.45 in FY23.

Components of Adjusted Quick Ratio (INR '000 crores)

  1. Receivables > 3 months not considered as liquid assets.
  2. Includes short-term investments and other current assets.
  3. Includes payables to GenCos, TranCos, Fuel Costs, Railway Receipt Costs.
  4. Includes - (a) Short term loans (b) Interest accrued & due on loans (c) Current maturities of long term loans.
  5. Includes employee-related payables, O&M works, capital works, electricity duty/cess payable, other financial liabilities, and other current liabilities.
  6. Number rounded off to nearest whole number.