The Delhi government has directed the Comptroller and Auditor General (CAG) to audit the city’s power distribution companies over concerns related to regulatory assets (RA) worth nearly ₹38,500 crore, according to livemint.com. This move follows a June Delhi High Court order that refused to interfere with the government’s proposal for the audit.
The directive came amid growing scrutiny of the financial health of Delhi’s power discoms, which have accumulated significant pending regulatory assets. The CAG audit aims to assess the legitimacy and management of these assets, which represent dues owed to the distribution companies. Delhi power minister Ashish Sood has been involved in addressing these concerns, as reported by livemint.com.
Regulatory assets reflect deferred payments that discoms claim from state governments or regulators, often impacting their cash flows and financial stability. The ₹38,500 crore figure highlights the scale of pending dues in Delhi’s power sector. Similar audits and interventions in other states have been part of broader efforts to improve the financial viability of power distribution companies in India.
The Delhi High Court’s refusal to stay the government’s audit proposal was a key legal development, allowing the CAG to proceed with its examination. The audit report is expected to provide detailed insights into the status of regulatory assets and guide future policy decisions regarding power sector reforms in the capital.