India’s power distribution sector has achieved a significant reduction in legacy dues, with outstanding payments from discoms falling from Rs 1.39 lakh crore in June 2022 to just Rs 3,300 crore as of March 2026. The dramatic decline is attributed to the implementation of the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, which restructured arrears into Equated Monthly Installments (EMIs).