Payment Dues of State DISCOMs to Renewable Power Developers Escalate to ₹97 Billion

The number of projects has increased from 472 to 513 in total


The Central Electricity Authority’s (CEA) recent report states that the total payment due for 513 renewable projects now amounts to ₹97.356 billion (~$1.356 billion) as of July 31, 2019, thus  showing an increase of nearly ~ ₹15 billion (~$0.21 billion) compared to the previous figure of ₹82.3 billion (~$1.14 billion) for the same period.

Interestingly, the report also states that one of the renewable developers withdrew its information submitted on August 12, 2019, regarding the payment dues of ₹17,225 million (~$240 million). Including that, the amount would come to ₹114.6 billion (~$1.56 billion).

In total, these 513 projects have renewable energy projects generating capacity of over 26 GW.

When Mercom contacted CEA for more information, a senior official said, “The developer was not interested in disclosing the names in the public domain.”

In August 2019, Mercom had reported that the payment dues were for 472 projects spread across the states of Andhra Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Odisha, Tamil Nadu, Rajasthan, Telangana, and Uttar Pradesh.

Meanwhile, three renewable energy generators, amended the details of their dues, thus giving relief to the Solar Energy Corporation of India (SECI).

“Now, there is no amounts pending to developers from SECI. Instead, SECI has receivables of ₹6,090 million (~$85 million) from DISCOMs,” states the report.

As reported earlier by Mercom, the payment dues of SECI had reached ₹357 million (~$4.96 million).

The three states which top the list of defaulters include Andhra Pradesh, Tamil Nadu, and Telangana.

Andhra Pradesh has dues totaling ₹25,092 million (~$349 million) followed by Tamil Nadu which needs to pay a total sum of ₹24,134 million (~$336 million). Compared to the previous report, the amount to be paid has increased by ₹3.91 billion (~$54.5 million). In case of Andhra Pradesh and Tamil Nadu, the payment of dues has increased by ₹5.94 billion (~$82.8 million).

At the beginning of August 2019, Mercom reported that the CEA is planning to maintain a database of all outstanding dues by DISCOMs to renewable energy generators.

In May 2019, Mercom had reported about the persistent problems being faced by renewable energy project developers due to the ongoing delays in payments.