India's Reliance Infra to recover $2.44 billion in unpaid power dues from New Delhi consumers
The dues stem from historical tariff shortfalls, where electricity prices approved by regulators did not fully cover the cost of supply.
Reliance Infra is part of the Anil Ambani-run Reliance Group. He is the younger brother of billionaire Mukesh Ambani.
Under a court-approved mechanism, the amount will be recovered from consumers over four years starting April 2024, likely through higher electricity tariffs.
On Wednesday, the Supreme Court ordered electricity regulators across India to clear deferred costs and unpaid dues owed to power distribution companies.
The court also instructed state regulators to conduct audits and submit recovery roadmaps.
In New Delhi alone, three distribution companies — including a unit of Tata Power (TTPW.NS), opens new tab — had accumulated 272 billion rupees in unpaid dues by March 2024, according to the court document.
The Delhi Electricity Regulatory Commission will oversee the recovery process, which is expected to result in increased electricity bills for consumers in the national capital.
($1 = 87.6140 Indian rupees)
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