DISCOM Dues to Power Generators in April Drop to ₹652 Billion

The current outstanding dues are ₹239.93 billion

May 3, 2024

/ Grid

State distribution companies (DISCOMs) owed power generators ₹652.16 billion (~$7.81 billion) in total dues for the monthly billing cycle in April 2024, according to the Ministry of Power’s payment ratification and analysis portal PRAAPTI.

The dues for the March billing cycle amounted to ₹778.57 billion (~$9.32 billion).

The current outstanding dues, excluding the latest monthly dues, are ₹239.93 billion (~$ 2.87 billion).

The overdue before the trigger date is ₹ 239.64 billion (~$2.87 billion), after which the amount will increase by ₹ 293.1 million (~$3.51 million) as the late payment surcharge (LPS) would apply.

Tamil Nadu DISCOMs had the highest dues at ₹80.46 billion (~$964.05 billion), followed by Uttar Pradesh at ₹76.94 billion (~$921.87 billion), and Maharashtra ₹64.06 billion (~$767,55 million).

The trigger date is one month after the due date of payment or two and a half months after the presentation of the bill by the generating company, whichever is later.

The DISCOMs are allowed to pay the outstanding amount in up to 48 installments.

In the recently published twelfth annual integrated ratings of DISCOMs, notable financial and operational performance shifts were witnessed. Out of the 55 DISCOMs evaluated for the financial year 2023, 17 have shown improvement in their grades, while 14 have been downgraded.

Of the DISCOMs, 14 achieved an A+ grade compared to 10 last year. Notably, six of these top DISCOMs hail from Gujarat, three from Odisha, and two from Haryana. Eight of these top performers are privately owned companies.

Last December, the Ministry of Power proposed regulating short-term and general network access for DISCOMs who fail to clear their dues after two and a half months by amending the Electricity (Late Payment Surcharge and Related Matters) Rules 2023.

The ministry highlighted in its year-end review that the Aggregate Technical and Commercial (AT&C) losses of DISCOMs decreased to 15.41% in the financial year (FY) 2022-23 from 17% in FY 2021-22. The ministry attributed the improvement to the various measures taken under the Revamped Distribution Sector program.