DISCOM Dues to Power Generators Mount to ₹101 Billion At the End of June
The outstanding dues to renewable generators stood at ₹8.4 billion at the end of June 2020
The distribution companies (DISCOMs) owed renewable generators ₹101.11 billion (~$1.3 billion) in overdue payments (excluding dues under dispute) spread across 544 invoices at the end of June 2020, according to data from the Ministry of Power’s (MoP) payment ratification and analysis portal (PRAAPTI).
As per the data released by PRAAPTI, the outstanding dues to the renewable generators stood at ₹8.4 billion ($111.9 million). The portal also showed that ₹123.3 million (~$1.6 million) was under dispute.
The data released from the portal also showed that 65 DISCOMS owed power generators ₹1.19 trillion in overdue payments spread across 17,118 invoices at the end of June 2020. In May, ₹1.138 trillion (~$15.28 billion) was recorded in overdue payments owed by 65 DISCOMs to 197 power generators spread across 16,320 invoices.
The DISCOMs had paid ₹65.18 billion (~$868.8 million) against the overdue amount and ₹15.57 billion (~$207.5 million) against the outstanding amount at the end of June 2020. The outstanding amount at the end of June stood at 134.26 billion (~$1.79 billion),while the overdue amount was ₹1.19 trillion (~$15.8 billion).
The state of Rajasthan had the highest overdue amount of ₹349.3 million (~$4.6 million), of which ₹321.2 million(~$4.3 million) have been overdue for more than 60 days. Tamil Nadu recorded the second-highest amount of overdue payment at ₹175.3 million (~$2.3 million), of which ₹149.1 million(~$1.9 million) have been overdue for more than 60 days. Uttar Pradesh was at the third spot with overdue payments of ₹144.1 million (~$1.9 million), of which ₹104.8 million (~$1.4 million) have been overdue for more than 60 days.
Tripura and Chhattisgarh were reported to be the ‘best’ states in terms of ease of payments by the DISCOMs, whereas, the states of Gujarat and Bihar were rated as ‘good.’
The states of Assam, Manipur, Nagaland, Rajasthan, Madhya Pradesh, Maharashtra, Telangana, Karnataka, Odisha, Kerala, West Bengal, Jharkhand, Goa, Delhi, Himachal Pradesh, Uttarakhand, and Jammu and Kashmirwere rated as the ‘worst’ states for ease of payments by the DISCOMs.
According to the data released by the portal, Adani Green Energy Limited, NLC India (RE), and Tata Power were the three non-conventional energy generators that were owed dues amounting to₹12.01 billion (~$160.1 million),₹13.16 billion (~$175.4 million), and ₹19.57 billion (~$260.8 million) respectively.
Earlier, it was reported that DISCOMs owed renewable generators ₹97.25 billion (~$1.31 billion) in overdue payments (excluding dues under dispute) spread across 538 invoices at the end of May 2020.
Earlier, the central government had announced that DISCOMs would receive ₹900 billion (~$12.03 billion) as part of the Government of India’s stimulus package to help the Indian economy recover from the coronavirus crisis. This one-time liquidity injection will be infused through the Power Finance Corporation (PFC) and REC Ltd in two equal installments.
Previously, Mercom had reported that the Ministry of Power had issued a clarification regarding letters of credit (LoC) to be given by distribution companies. It stated that DISCOMs are expected to deposit letters of credit for 50% of the cost of power they want to be scheduled, while the remaining 50% will have to be paid within 45 days of the presentation of the bill or as specified in the power purchase agreement. If the payment is not made as specified, the late payment surcharge will apply.