Reliance Infrastructure Set to Recover Over 28,000 Crores in Outstanding Power Payments
The Supreme Court of India has issued a landmark ruling, mandating the recovery of power dues worth approximately ₹28,483 crore by BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) over a period of four years, starting from April 1, 2024. This ruling aims to address the long-standing issue of deferred revenue gaps, known as regulatory assets, that power distribution companies (discoms) are allowed to recover through future tariffs.
As of March 31, 2024, the regulatory assets for BYPL and BRPL, including carrying costs, stood at around ₹21,413 crore. When combined with the regulatory assets of Tata Power Delhi Distribution Ltd, the total dues for all three discoms amount to approximately ₹27,200 crore. However, the Supreme Court's order pertains specifically to the dues of BYPL and BRPL, which total ₹28,483 crore as of July 31, 2025.
The recovery of these dues will be done through increased tariffs, which means power consumers in Delhi can expect a rise in electricity charges over the recovery period. The Supreme Court has also directed the Electricity Regulatory Commissions (like the Delhi Electricity Regulatory Commission) to prepare a time-bound roadmap for the recovery, ensure strict audits to verify the delays, and factor carrying costs into overall amounts payable. The Appellate Tribunal for Electricity will supervise the implementation.
This ruling follows appeals by Reliance Infrastructure, the parent company of BYPL and BRPL, which began in 2014. The company contested the non-cost reflective tariffs and delays in the liquidation of these dues. The Supreme Court's decision seeks to amend a long-standing practice of deferring such dues indefinitely.
The two discoms supply electricity to 5.3 million households in Delhi. Reliance Infrastructure holds a 51% stake in these discoms, with the remaining 49% owned by the Delhi government. The Supreme Court order does not specify the recovery timeline for the regulatory assets of Tata Power Delhi Distribution Ltd.
The order was published on August 8, 2025, and it sets guidelines for the recovery of regulatory assets. However, the article does not provide any information about the impact of the Supreme Court order on the power distribution companies in Delhi or any negotiations between India and Reliance Infrastructure regarding the tariff issue.
- The Supreme Court's ruling mandates the recovery of approximately ₹28,483 crore in power dues by BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) over four years, starting from April 1, 2024.
- The increased tariffs resulting from the recovery of these dues may lead to a rise in electricity charges for consumers in Delhi over the recovery period.
- The Supreme Court has directed the Electricity Regulatory Commissions to prepare a time-bound roadmap for the recovery, ensure strict audits, and factor carrying costs into the overall amounts payable.
- The Supreme Court's decision aims to address a long-standing practice of deferring such dues indefinitely and seeks to amend this practice.
- The order does not specify a recovery timeline for the regulatory assets of Tata Power Delhi Distribution Ltd, one of the other power distribution companies in Delhi.
