The dues of power producers to discoms increased on a yearly as well as month-on-month basis, indicating pressure in the sector. Genco’s dues to discoms increased in May as compared to April.
Discoms get 45 days for payment.
Dues of power generation companies (Gencos) to power distribution companies (discoms) declined by 15.25 per cent to Rs 82,305 crore in May 2021 from a year ago. As of May, 2020, the dues of power distribution companies on discoms stood at Rs 97,111 crore. This information has been received from the Payment Ratification and Analysis in Power Procurement for Bringing Transparency in Invoicing of Generation (PRAAPTI) portal.
The dues of power producers to discoms increased on a yearly as well as month-on-month basis, indicating pressure in the sector. Genco’s dues to discoms increased in May as compared to April. It stood at Rs 77,203 crore in April. PRAPTI portal was launched in May, 2018 to bring transparency in power purchase transactions between power producers and DISCOMs. The total outstanding amount on the discoms was Rs 68,762 crore even after the grace period of 45 days till May, 2021. It was Rs 84,691 crore a year ago. According to the latest data from the portal, the total dues on discoms in April stood at Rs 63,050 crore.
Discoms get 45 days for payment
Power generating companies give 45 days to the discoms to pay the electricity bills sold. After that this amount comes in the old arrears. In most such cases, power producers charge penal interest. For the relief to the power generating companies, the Center has implemented payment security system from August 1, 2019. Under this arrangement, the discom has to give a letter of credit to get the power supply.
1.35 lakh crore relief for discoms
The central government has also given some relief to the power distribution companies. Penal charges were waived off for delay in payment to discoms due to the COVID-19 pandemic. The government had introduced a cash infusion scheme of Rs 90,000 crore for discoms. Under this, power distribution companies can take cheap loans from Power Finance Corporation and REC Limited. Later the government increased this package to Rs 1.2 lakh crore and after that to Rs 1.35 lakh crore.
68,762 crore dues on discoms
The data shows that the distribution companies of Rajasthan, Uttar Pradesh, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Jharkhand and Tamil Nadu account for the largest share of the dues of the generating companies. After the end of the payment period, the total outstanding dues on the discoms as on May 2021 was Rs 68,762 crore. In this, the share of independent power producers is 35.86 percent. At the same time, the dues of Genco to the Central Public Sector Undertaking is 47.59 percent.
NTPC needs 8,297 crore from discoms
NTPC alone has to recover Rs 8,297.29 crore from discoms among public sector undertakings. The dues of NLC India are Rs 3,918.61 crore, Damodar Valley Corporation (DVC) dues Rs 3,847.90 crore, NHPC Rs 2,432.65 crore and THDC India Rs 1,130.33 crore.
Adani Group’s dues Rs 17338 crore
Among the private power generating companies, Adani Power owes Rs 17,338.48 crore, SEMB (Sembcorp) Rs 2,420.53 crore, IL&FS Tamil Nadu Power Company Rs 2,004.53 crore, Jindal Steel & Power Rs 1,659.61 crore and Bajaj Group’s Lalitpur Power Generation Company Rs 1,608.10 crore. is Rs. At the same time, the outstanding dues of non-conventional energy sources such as solar and wind energy companies is Rs 11,373.88 crore.
Also read, Big news! Jewelers will have to pay GST on the profit of sale of old gold jewelery
Also read, This week, the market cap of six companies in the top-10 of the Sensex increased by 69611 crores, Reliance was the biggest gainer