DISCOM Dues to Renewable Generators Decline Marginally to ₹106.7 Billion in September
Overall, 66 DISCOMS owed power generators over ₹1.26 trillion in overdue payments at the end of the month
Distribution companies (DISCOMs) owed over ₹106.7 billion (~$1.43 billion) to renewable energy generators (excluding disputed amounts) in overdue payments across 460 pending invoices, according to data from the Ministry of Power (MoP).
This was a slight decline from August when DISCOMs owed renewable generators ₹109.08 billion (~$1.49 billion) in overdue payments spread across 497 invoices.
According to data from the MoP’s payment ratification and analysis portal (PRAAPTI), DISCOMs owed ₹7.02 billion (~$94.4 billion) in outstanding payments (excluding disputed amounts) at the end of September 2020. Payments under dispute stood at ₹123.7 million (~$1.7 million) during the month.
Overall, 66 DISCOMS owed power generators over ₹1.26 trillion (~$1.58 billion) in overdue payments spread across 20,423 invoices at the end of September 2020. Outstanding amounts at the end of the month stood at ₹117.8 billion (~$1.58 billion). At the end of August 2020, 66 DISCOMS owed power generators about ₹1.22 trillion (~$16.4 billion) across 19,859 invoices, according to the portal.
Of these amounts, DISCOMs paid ₹82.4 billion (~$1.1 billion) towards overdue payments in September 2020 compared to ₹117.8 billion (~$1.5 billion) paid in August 2020.
Rajasthan had the highest dues on record with over ₹378.4 billion (~$5.1 billion) in overdue payments. Of this, ₹32.4 billion (~$435.7 billion) was overdue by 60 days or less and the remaining ₹34.6 billion (~$465.2 billion) has been pending for over 60 days.
Tamil Nadu had the second-highest dues with about ₹209.2 billion (~$2.8 billion) in overdue payments of which ₹18.9 billion (~$254.1 million) was overdue by 60 days or less and ₹190.3 billion (~$2.6 billion) has been pending for over 60 days. The state was rated “good” in terms of ease of payment by DISCOMs. Meghalaya was the only other state that received the same rating.
Gujarat, Himachal Pradesh, Manipur, and Mizoram were the only states that received the “best” rating in terms of ease of payments. Meanwhile, Jammu and Kashmir, Uttarakhand, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Jharkhand, West Bengal, Chhattisgarh, Odisha, Andhra Pradesh, Goa, Karnataka, and Kerala received the “worst” rating.
Adani Green Energy Limited, NLC India Limited (RE), and Tata Power Company Limited were the non-conventional power generators that were owed the highest dues at around ₹12 billion (~$161.4 million), ₹10.14 billion (~$ 136.3 million), and ₹21.18 billion (~$ 284.7 million), respectively.
DISCOMs have weighed down the renewable power industry due to their poor financial performance and their inability to pay their dues on time. A little earlier, the Power Finance Corporation Limited approved ₹306.07 billion (~$4.09 billion) and REC limited approved another ₹300 billion (~$4 billion) as of July 31, 2020, as part of the ₹900 billion (~$12.03 billion) liquidity package announced by the government for eligible DISCOMs in May.
Nithin Thomas is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.