For the first time ever in the sector, aggregate subsidy disbursement by state governments crossed 100 percent of subsidy booked

State governments disbursed 102 percent of subsidy amount booked in FY22, compared to 95 percent and 85 percent in FY20 and FY21, respectively. The states also cleared subsidy arrears of INR 11,500 crore in FY22 (about 15% of arrears outstanding at beginning of the year).

Tariff subsidy disbursement (intrinsic part of state discoms’ revenues) was 109 percent in FY22. Other subsidy disbursement (ad-hoc subsidies provided under various center/state schemes, such as UDAY, AtmaNirbhar Bharat, etc. to support financially weaker discoms) increased marginally from INR 25,000 crore in FY20 to INR 26,000 crore in FY22.