Discoms Unpaid dues to power generation companies rise by 4% to Rs 1.32 Lakh Crore in June


Total unpaid dues owed by electricity distribution companies (discoms) to power producers increased by 4% year-on-year to reach Rs 1,32,432 crore in June 2022.

Discoms owed a total of Rs 1,27,306 crore to power generation companies in June 2021, according to the PRAAPTI (Payment Ratification And Analysis in Power Procurement for bring Transparency in Invoicing of generators) portal.

On a sequential basis, total dues in June increased by Rs 1,30,139 crore in May 2022.

The PRAAPTI portal was launched in May 2018 to bring transparency to electricity purchase transactions between producers and discoms.

In June 2022, the total amount outstanding, which has not been settled even after 45 days of a grace period offered by the generators, stood at Rs 1,15,128 crore against Rs 1,04,095 crore in the same month one year ago. The outstanding amount stood at Rs 1,07,636 crore as of May 2022.

Electricity producers are giving discoms 45 days to pay electricity supply bills. After that, the unpaid dues become overdue and the producers charge criminal interest on that in most cases.

To relieve electricity production companies (gencos), the Center has set up a payment security mechanism from August 1, 2019. As part of this mechanism, nightclubs are required to open letters of credit to get a power supply.

The Center had also given discoms some reprieve for paying dues to gencos due to the COVID-19-induced lockdown. The government had also waived criminal charges for late payment of contributions.

In May 2020, the government announced a cash injection of Rs 90,000 crore for discoms under which these utilities secured loans at economic rates from Power Finance Corporation (PFC) and REC Ltd.

This was a government initiative to help gencos stay afloat. Later, the cash infusion package was increased to Rs 1.2 lakh crore and later to Rs 1.35 lakh crore.

Discoms in Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh, Uttar Pradesh, Jammu and Kashmir, Karnataka, Madhya Pradesh, Jharkhand and Rajasthan account for the bulk of genco dues , according to the data.

The arrears of independent power producers stood at 53.17% of the total arrears of Rs 1,15,128 crore of discoms in June 2022.

The proportion of late central PSU producers was 22.4%.

Among the core public sector gencos, NTPC alone has an overdue amount of Rs 5,441.95 crore on discoms, followed by DVC at Rs 3,885.19 crore and NPCIL at Rs 3,272.24 crore, as of June 2022.

Among private generators, discoms owe the highest outstanding amount of Rs 21,625.02 crore to Adani Power during the month under review. The backlog of unconventional power generators like solar and wind stood at Rs 22,432.27 crore in June 2022.

Source link


About Author

Comments are closed.