Distribution Companies’ Dues To Power Producers Rise 4% In May

Dues of power producers to distribution companies increased by 4 percent in May

New Delhi:

According to official data, the total dues of power distribution companies to power producers increased by 4.04 per cent year-on-year to Rs 1,21,765 crore in May 2022.

According to the portal PRAAPTI (Payment Ratification and Analysis in Power Purchase to Bring Transparency in Invoicing of Generators), a total of Rs 1,17,026 crore is owed to discoms by power generation firms in May 2021.

On a sequential basis also, the total outstanding in May 2022 increased from Rs 1,20,954 crore in April 2022. The PRAAPTI portal was launched in May 2018 to bring transparency in power purchase transactions between generators and discoms.

In May 2022, the total overdue amount, which was not cleared by generators even after 45 days of the grace period, stood at Rs 1,06,902 crore as against Rs 94,354 crore in the same month a year ago. The outstanding amount in April 2022 was Rs 1,06,071 crore.

Power producers have given 45 days to discoms to pay electricity supply bills. After that, the outstanding dues become overdue and the generators charge interest on the same in most cases.

To provide relief to power generation companies (Gencos), the Center implemented payment security mechanism with effect from August 1, 2019. Under this mechanism, the discoms are required to open letters of credit to get power supply.

The Center had given some relief to discoms to clear dues to Gencos in view of the COVID-19-induced lockdown. The government had also waived off penal charges for delay in payment of dues.

In May 2020, the government announced Rs 90,000 crore liquidity for discoms, under which these utilities got loans at affordable rates from Power Finance Corporation (PFC) and REC Ltd. It was a government initiative to help keep Gencos afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore and further to Rs 1.35 lakh crore.

Data shows that discoms in Rajasthan, Uttar Pradesh, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Jharkhand and Tamil Nadu paid the bulk of their dues to Genco in April.

Independent power producers accounted for 55.86 per cent of the total overdues of Rs 1,06,902 crore of discoms. The proportion of CPSEs in overdue was 22.35 per cent.

Among the central public sector gencos, NTPC alone has an overdue amount of Rs 5,072.82 crore, followed by NPCIL – Kundankulam Nuclear Power Plant at Rs 3,419.78 crore and DVC at Rs 3,398.57 crore in May 2022.

Among private producers, discoms owe the most to Adani Power with Rs 25,284.67 crore, followed by KSK Mahanadi Power Company Ltd with Rs 5,324.32 crore and Bajaj Group-owned Lalitpur Power Generation Company with Rs 5,308.29 crore.

The dues of renewable energy producers stood at Rs 20,127.16 crore in May 2022.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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