The total dues owed by Discom to electricity distribution companies has declined 3.4% in March 2021. Now Discom owes 78,379 Cr Rs. to electricity distribution companies.
Till February 2021, dues owed by Distribution Company (Discom) towards electricity distribution companies have been increasing year on year & this was causing a lot of stress in the power sector.
According to the portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) data, the total dues owed by Discom to distribution companies was 81,116 crore in March 2020.
The PRAAPTI portal was launched in May 2018 which brings more clarity in power purchase transactions between generators and discoms.The dues on Discom decreased from Rs 99,023 crore in January 2021 to Rs 98,673 crore in February.
Discom was given 45 days of the grace period by power generators to clear their outstanding dues. Failing to which outstanding dues become overdue.
To give relief to power generation companies (gencos), the Centre enforced a payment security mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit for getting power supply.
After the grace period of 45 days, generators added penal interest on overdues which the government had waived off because of the Covid-19 and lockdown effect. In May, the government announced Rs 90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from Power Finance Corporation (PFC) and REC Ltd. This was a government initiative to help gencos remain afloat. Further, this package was increased to Rs 1.35 lakh crore.
According to the data, the major portion of the dues to gencos belongs to Rajasthan, Uttar Pradesh, Jammu & Kashmir, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Jharkhand, and Tamil Nadu.
The independent power producers hold the major share of 52.5% of the total overdue of Rs 67,417 crore. The central PSU gencos held 30.82% in the overdue.
Among the central public sector gencos, Discom Owe Rs 5,021.76 crore to NTPC alone, along with this, Rs 4,888.16 crore to Damodar Valley Corporation, Rs 3,534.78 crore to NLC India, Rs 1,453.31 crore to NHPC, and Rs 1,147.82 crore to THDC India in March 2021.
Within the private generators, the highest overdue of Rs 18,407.76 crore to Adani Power, along with this, Rs 4,817.12 crore to Lalitpur Power Generation Company owned by Bajaj Group, and Rs 2,375.80 crore to SEMB (Sembcorp) owed by Discom.
Besides this, the portion of non-conventional energy producers like solar and wind stood at Rs 11,242.39 crore in this overdue.
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