Madhya Pradesh: Government Converts ₹13,300 Crore Power Sector Debt Into Equity

Bhopal (Madhya Pradesh): In a major financial restructuring move, the Madhya Pradesh government has decided to convert outstanding loans of three state power distribution companies—Central, Eastern, and Western—into equity to help clean up their balance sheets and improve capital-raising ability.

These loans, amounting to Rs 13,300 crore, were taken under the Union government's UDAY (Ujwal DISCOM Assurance Yojana) scheme. The conversion will be done in three annual instalments.

An official from the Energy Department said that in 2024–25, loans worth Rs 4,000 crore have already been converted. The 2025–26 budget has a provision of Rs 5,000 crore for the second phase, and the remaining amount will be converted in 2026–27.

"This move is aimed at improving the financial health of discoms and enabling them to attract capital from the market," the official said.

Earlier, the state government had taken similar steps but had paused the process for a few years. With mounting demand from power companies, the conversion drive has now been resumed.

Power companies had long urged the state to convert UDAY loans into equity to ease the debt burden and strengthen financial standing—key for raising funds and sustaining operations in the power sector.

High winds damage power infra in Vindhya

Strong winds wreaked havoc in the Vindhya region, damaging four power transmission towers. MP Transco’s Chief Engineer Sandeep Gayakwad confirmed that two towers near the Sone River were completely destroyed, while two others were partially damaged.

Restoration work is underway, but officials estimate it will take at least three weeks to fully resume power supply in affected areas.