Discoms’ outstanding dues to power gencos rise nearly 24% to ₹1.36 lakh crore in December

Total dues owed by electrical energy distribution corporations to power producers rose nearly 24% to ₹1,36,966 crore in December 2020 in contrast to the identical month a 12 months in the past, reflecting stress in the sector.

The distribution corporations (discoms) owed a complete of ₹1,10,660 crore to power era corporations in December 2019, in accordance to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of turbines).

The portal was launched in May 2018 to convey in transparency in power buy transactions between the turbines and discoms.

In December 2020, the overall overdue quantity, which was not cleared even after 45 days of grace interval supplied by turbines, stood at ₹1,27,498 crore as in opposition to ₹97,835 crore in the year-ago interval.

According to the newest information on the portal, complete outstanding dues in December dipped on a month-on-month foundation. In November 2020, the overall outstanding dues of discoms stood at ₹1,40,741 crore.

The overdue quantity in December 2020 has decreased from ₹1,27,539 crore in November 2020.

Power producers give 45 days to discoms to pay payments for electrical energy provide. After that, outstanding dues grow to be overdue and turbines cost penal curiosity on that in most instances.

To give reduction to power era corporations (gencos), the Centre enforced a cost safety mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit score for getting power provide.

The Central authorities had additionally given some breathers to discoms for paying dues to power producing corporations in view of the COVID-19-induced lockdown. The authorities had additionally waived penal prices for late cost of dues in the directive.

In May, the federal government introduced ₹90,000 crore liquidity infusion for discoms underneath which these utilities would get loans at economical charges from Power Finance Corporation (PFC) and REC Ltd.

This was a authorities initiative to assist gencos to stay afloat. Later, the liquidity infusion bundle was elevated to ₹1.2 lakh crore.

Discoms in Rajasthan, Uttar Pradesh, Jammu & Kashmir, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Jharkhand, Haryana and Tamil Nadu account for the key portion of dues to power gencos, the info confirmed.

Overdue of unbiased power producers quantity to 32.14% of the overall overdue of ₹1,27,498 crore of discoms in December. The proportion of central PSU gencos in the overdue was 33.57%.

Among the central public sector power turbines, NTPC alone has an overdue quantity of ₹17,946.97 crore on discoms, adopted by Damodar Valley Corporation at ₹6,682.61 crore, NLC India at ₹6,123.78 crore, NHPC at ₹3,141.43 crore and THDC India at ₹2,022.23 crore.

Among non-public turbines, discoms owe the best overdue of ₹16,878.25 crore to Adani Power adopted by Bajaj Group-owned Lalitpur Power Generation Company Ltd at ₹4,462.10 crore, SEMB (Sembcorp) at ₹2,735.62 crore and GMR at ₹2,195.12 crore. The overdue of non-conventional vitality producers like photo voltaic and wind stood at ₹12,117.78 crore in December.