The Ministry of Power (MoP) on February 13, 2026, issued a notification regarding a significant reduction in DISCOM Arrears under the LPS Rules; a separate liquidation scheme is not required.
The following has been stated: -
•Government of India implemented the LPS Rules, 2022, to reschedule DISCOM arrears into EMIs starting August 2022.
•Around ₹1.39 lakh crore arrears from 13 states were restructured for systematic repayment.
•After payment of 43 EMIs and pre-payments, legacy dues reduced significantly to ₹4,109 crore as on 10.02.2026.
•Due to improved payment discipline and a sharp reduction in arrears, no separate liquidation scheme is currently required.
The detailed notification is given in the document below.
[Notification No.: 2226928]
