DISCOMs Dues to Renewable Generators Rise to ₹118.6 Billion in November

Overall, 65 DISCOMs owe 230 generators ₹1.29 trillion against 21,977 invoices

January 5, 2021


Distribution Companies (DISCOMs) owed renewable energy generators ₹118.6 billion (~$1.6 billion) in overdue payments (excluding disputed amounts) across 452 invoices at the end of November 2020, according to data from the Ministry of Power (MoP).

In October 2020, DISCOMs owed renewable generators ₹110.67 billion (~$1.5 billion) in overdue payments against 439 pending invoices.

Outstanding payments (excluding disputed amounts) in November stood at ₹5.2 million (~$71,343), according to data from the MoP’s payment ratification and analysis portal (PRAAPTI).

DISCOMs paid ₹15.3 billion (~$209,914) towards their outstanding dues and ₹91.5 billion (~$1.3 billion) towards overdue amounts during November. Outstanding amounts are payments that have been delayed by over six months.

At the end of the month, 65 DISCOMs owed 230 generators ₹1.29 trillion (~$17.7 trillion) in overdue payments against 21,977 overdue invoices. Outstanding payments stood at ₹117.5 billion (~$1.6 billion) at the end of the month.

DISCOMs Dues to Power Generators

Rajasthan continued to hold the highest overdue payments to generators at ₹393.8 billion (~$5.4 billion), of which ₹367.6 billion (~$5.04 billion) has been overdue for more than 60 days. Tamil Nadu was close behind with ₹218.3 billion (~$2.9 billion), of which ₹196.9 billion (~$2.7 billion) has been overdue for over 60 days.

Gujarat, Haryana, Bihar, Jharkhand, West Bengal, Sikkim, Arunachal Pradesh, Nagaland, Manipur, and Mizoram were rated the “Best” in terms of ease of payments by DISCOMs in November. Uttar Pradesh, Odisha, Telangana, Assam, and Meghalaya were rated “OK,” Himachal Pradesh was rated “Bad,” while all other states were given the “Worst” rating.

The non-conventional power generators who were owed the most were Adani Green Energy Limited, NLC India Limited (RE), and Tata Power Company Limited with ₹12 billion (~$164.6 million), ₹11.6 billion (~$159.2), and ₹22.7 billion (~$311.4 million) in pending dues, respectively, as of November 2020.

In October, DISCOMs owed over ₹110.67 billion (~$1.5 billion) to renewable energy generators (excluding disputed amounts) in overdue payments across 439 pending invoices.

Power producers across the country are reeling under the enormous stress of delayed payments by DISCOMs. Recently, the Association of Power Producers even complained that Tamil Nadu Generation and Distribution Corporation is forcing them to accept heavy discounts on dues payable.

The situation in Andhra Pradesh is worsening. The National Solar Energy Federation of India warning of the Indian banking system at the risk of suffering NPAs to the tune of ₹150 billion (~$2.04 billion) to ₹180 billion (~$2.4 billion) due to the delays in payments by the state DISCOMs to renewable power generators. The Federation has also requested the Union Power Minister for the release of payments by Power Finance Corporation and REC Limited to renewable energy developers having power purchase agreements with Andhra Pradesh distribution companies.

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.