In a significant victory for Reliance Infrastructure (RInfra), its subsidiaries BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd will recover Rs 28,483 crore in power dues following a Supreme Court ruling on August 6, 2025. The two distribution companies (discoms), in which RInfra holds a 51% stake and the Delhi government holds 49%, supply electricity to 5.3 million households in Delhi. The court’s directive, detailed in a regulatory filing by RInfra on August 8, 2025, mandates the recovery of these regulatory assets, including carrying costs, over four years starting retrospectively from April 1, 2024.

Regulatory assets, which represent deferred revenue gaps to be recovered through future tariffs, had accumulated to Rs 12,993.53 crore for BSES Rajdhani Power Ltd, Rs 8,419.14 crore for BSES Yamuna Power Ltd, and Rs 5,787.70 crore for Tata Power Delhi Distribution Ltd as of March 31, 2024, totaling Rs 27,200.37 crore for Delhi’s three private discoms. RInfra’s subsidiaries had been grappling with these dues since 2014, when they filed writ petitions and civil appeals before the Supreme Court, citing issues like non-cost reflective tariffs and delayed liquidation of regulatory assets.

The Supreme Court, after extensive hearings involving state governments and Electricity Regulatory Commissions (ERCs), ordered the ERCs to provide a clear roadmap for liquidating these assets, including provisions for carrying costs. Additionally, the court mandated a strict audit of the circumstances that led to the prolonged non-recovery of these dues. This ruling not only ensures financial recovery for RInfra’s subsidiaries but also sets a precedent for addressing regulatory asset challenges in India’s power distribution sector, promising greater stability for Delhi’s electricity supply chain.

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