Karnataka government departments owe escoms ₹8,690 crore 

Given the financial state of the escoms, experts say that it is essential for government departments to clear their dues as soon as possible. 
| Photo Credit: file photo

 By the end of this January, arrears owed by various government departments to Karnataka’s electricity supply companies (escoms) stand at a whopping ₹8,690.19 crore, according to data provided by the Energy Department recently. 

The highest amount of ₹4,541.21 crore is owed to the Bangalore Electricity Supply Company (Bescom), followed by ₹1,505.17 crore owed to the Hubli Electricity Supply Company (Hescom). The Gulbarga Electricity Supply Company (Gescom) is owed ₹1,316.42 crore, the Chamundeshwari Electricity Supply Company (Cesc) ₹764.22 crore, the Mangaluru Electricity Supply Company (Mescom) ₹542.01 crore, and the Hukkeri Rural Electric Cooperative Society is owed ₹21.16 crore. 

In March 2024, Bescom was owed ₹6,840 crore and the outstanding dues have reduced by ₹2,299 crore between then and January 2025.

In December 2024, Energy Minister K.J. George revealed that Bescom was owed ₹2,095.74 crore just from public drinking water units and streetlight systems until October 31 of that year.  

After serving multiple notices to such offices, the power utility had begun disconnecting power to long-time government defaulters. Bescom officials had said that while causing inconvenience to the public was not something they wanted to do, they were left with no choice but to cut off the power supply.  

Speaking in the Legislative Council recently, Mr. George also said that the escoms have the right to cut off electricity supply to government offices which fail to pay the bills even after a 15-day notice is served.  

“However, keeping in mind the welfare of the general public, we have not cut off power supply to government hospitals which provide emergency services, schools and colleges, police stations, courts, and drinking water units. We are going ahead with disconnection of power supply to other government departments for non-payment of bills and arrears,” he explained.

He added that letters have also been written to various government departments to pay the dues.  

Given the financial state of the escoms, experts say that it is essential for government departments to clear their dues as soon as possible. “With the exception of Mescom, all the other escoms are experiencing losses to the tune of ₹39,000 crore. Karnataka’s power sector is collapsing and it will suffer further unless its health is guarded by the government. If the recovery of these dues does not happen now, it will never happen,” said M.G. Prabhakar, former advisory member, KERC.