Lending increased by more than 42 thousand crores in a year
Government is considering increasing the relief package of DISCOM
The total arrears of electricity generating companies (Genco) on electricity distribution companies (discoms) increased by 47 percent year-on-year to Rs 1.33 lakh crore in June 2020. As of June, 2019, the discoms’ outstanding dues on discoms stood at Rs 90,655 crore. This information has been received from the Payment Ratification and Analysis in Power Procurement for Bringing Transparency in Invoicing of Generation portal. Dues of about 42 thousand crores increased in the last one year
The realization portal started in May 2018
The procurement portal was launched in May 2018 to bring transparency in power purchase transactions between power producers and distributors. By June 2020, even after a 60-day grace or grace period, the outstanding amount on DISCOM was Rs 1,20,041 crore. It was Rs 72,362 crore a year ago. According to the latest data from the portal, the total arrears in June increased from the previous month. The total outstanding on discoms in May was Rs 1,26,963 crore. After the end of the payment period in June 2020, the outstanding amount on DISCOM increased from Rs 1,13,869 crore in May.
Discom gets 60 days to pay
Electricity generating companies give 60 days to discoms to pay the electricity bills sold. After that this amount comes to the old arrears. In most such cases electricity producers charge a penal interest. The Center has implemented a payment protection system from August 1, 2019 to provide relief to power generating companies. Under this arrangement, discoms have to give a letter of credit to get power supply. The central government has also given some relief to the power distribution companies. Kovid-19 has waived punitive fees for delay in payment to discoms due to epidemic.
Government plans to put 90 thousand crores in discoms
In May, the government introduced a plan to infuse Rs 90,000 crore in cash for discoms. Under this, power distribution companies can take cheap loans from Power Finance Corporation and REC Limited. This initiative will also provide relief to the power generating companies. It is said that on the request of some states, the government is going to increase this package to 1.25 lakh crore rupees. The data shows that the power distribution companies of Rajasthan, Uttar Pradesh, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu have the largest share in the dues of the generating companies.
NTPC to recover Rs 19,298 crore
Discoms owe a total of Rs 1,20,041 crore till June after the expiry of the payment period. The share of independent power producers in this is 34.78 percent. At the same time, Genco owes 36.58 percent of the Central Public Sector Undertaking sector. Among public sector undertakings, NTPC alone has to recover Rs 19,298.77 crore from discoms. NLC India owes Rs 6,280.76 crore, Damodar Valley Corporation Rs 5,570.99 crore, NHPC Rs 3,518.97 crore and THDC India owes Rs 2,551.32 crore.
22,319 crores owed to Adani Power
Among private power producing companies, Adani Power owes Rs 22,319.41 crore, Bajaj Group’s Lalitpur Power Generation Company has Rs 3,884.91 crore, SEMB (Sembcorp) Rs 2,210.22 crore and GMR Rs 1,930.16 crore. Non-conventional energy sources such as solar and wind power companies owe Rs 10,111.33 crore.