With continued stress in the sector, the power distribution companies (Discoms) total outstanding dues towards power generating companies (Gencos) surged more than 47 per cent to Rs 1.33 lakh crore in June 2020. As per the PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) portal, Disco
August 03, 2020. By Manu Tayal
With continued stress in the sector, the power distribution companies (Discoms) total outstanding dues towards power generating companies (Gencos) surged more than 47 per cent to Rs 1.33 lakh crore in June 2020.
As per the PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) portal, Discoms owed an aggregate of Rs 90,655 crore to Gencos in June 2019.
With an aim to bring in transparency in the power purchase transactions between Gencos and Discoms, this portal was launched in May 2018.
According to the PTI report, an aggregate overdue amount, which was not cleared even after 60 days of grace period offered by Gencos, stood at Rs 1,20,041 crore, during June 2020, as compared to Rs 72,362 crore in the same period last year.
Also, total outstanding dues in June grew over the previous month. In May 2020, the total dues of discoms stood at Rs 1,26,963 crore, as per the latest data on portal.
Besides, the overdue amount in June 2020 too grew from Rs 1,13,869 crore in May 2020.
However, Gencos provide 60 days to Discoms for paying bills for the supply of electricity. After that, outstanding dues become overdue and Gencos charge penal interest on that in most cases.
Thus, to provide some relief to Gencos, the Centre enforced a payment security mechanism from August 1, last year. Under this mechanism, Discoms are required to open letters of credit for getting power supply.
In view of coronavirus-induced lockdown, the government had provided some breathers to Discoms for paying dues to Gencos. The penal charges had also been waived by the government for late payment of dues in the directive.
As per the data showed, quoted PTI that, Discoms in the states of Rajasthan, Uttar Pradesh, Jammu & Kashmir, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu account for major portion of dues to Gencos.
Moreover, the overdues of independent power producers (IPP) amount to 34.78 per cent of the total overdue of Rs 1,20,041 crore of Discoms in June. The proportion of central PSU Gencos in the overdue was 36.58 per cent.
Among Gencos, Discoms owe the highest overdue of Rs 22,319.41 crore to Adani Power followed by Bajaj Group-owned Lalitpur Power Generation Company Ltd at Rs 3,884.91 crore, SEMB (Sembcorp) Rs 2,210.22 crore and GMR at Rs 1,930.16 crore.
Meanwhile, the overdue of non-conventional energy producers like solar and wind energy, stood at Rs 10,111.33 crore in June.
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