Distribution companies (DISCOMs) owed ₹121.91 billion (~$1.63 billion) to renewable energy generators (excluding dispute amounts) in overdue payment across 256 pending invoices at the end of June 2021, according to data released by the Ministry of Power (MoP).

The amount was slightly lower compared to $124.2 billion (~$1.66 billion) spread over 193 pending invoices at the end of May 2021.

According to MoP’s payment ratification and analysis portal (PRAAPTI), outstanding payments to renewable power generators stood at ₹9.58 billion (~$128.87 million) at the end of June 2021. An increase from the ₹8.69 billion (~$116.63 million) outstanding at the end of May 2021.

DISCOMs paid around ₹32.21 billion (~$433.16 million) in outstanding amounts and ₹125.4 billion (~$1.68 billion) in overdue amounts, increasing 25% and 52%, respectively, when compared to the May figures.

According to the data released by the portal, the overdue amount to power generators at the end of June stood at ₹889.85 billion (~$11.97 billion), an increase of 32% compared to ₹672.98 billion (~$9.05 billion) in May 2021.

At the end of the month, the outstanding amount was ₹144.74 billion (~$1.95 billion), an increase of 10% compared to $131.42 billion (~$1.77 billion) in the previous month.

Among the states, Tamil Nadu had the highest backlog with an overdue amount of ₹182.34 billion (~$2.45 billion), followed by Maharashtra and Rajasthan with an overdue amount of ₹166.06 billion (~$2.23 billion) and ₹101.74 billion (~$1.36 billion), respectively.

In terms of ease of payments by DISCOMs, Tamil Nadu, Maharashtra, Rajasthan, Karnataka, Telangana, Jammu and Kashmir, and Andhra Pradesh remained at the bottom of the rung. Some of the best performing states for the month were Goa, Gujarat, Chhattisgarh, Kerala, Tripura, Himachal Pradesh, Uttarakhand, Bihar, Arunachal Pradesh, Assam, and Nagaland. Nagaland had no overdue amount, the portal stated.

Non-conventional energy generators to whom the DISCOMs owed most included Tata Power, Adani Green Energy, and Hero Future Energies, with ₹25.79 billion (~$346.82 million), ₹17.18 billion (~$231.03 million), and ₹10.5 billion (~$141.22 million), respectively.

Last month, MoP issued detailed guidelines for the reform-based result-linked power distribution program over the next five years. The program is expected to improve the quality and the reliability of power supply to consumers through a financially sustainable and operationally efficient distribution sector. Earlier in June 2021, finance minister Nirmala Sitharaman had announced a ₹3.03 trillion (~$40.82 billion) outlay for the program.

Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.

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