New Delhi: The dues owed by discoms to power gencos has registered its biggest decline in recent times as there has been a reduction of Rs 24,680 crore, according to the data shared by the Ministry of Power on Wednesday. "The total outstanding dues of states which were at Rs 1,37,949 crore as on 03.06.2022 have been reduced by Rs 24,680 crore to Rs 1,13,269 crore with timely payment of just four EMIs," said the ministry.

"With the implementation of Electricity (gencosLPS and Related Matters) Rules, 2022, remarkable improvement has been seen in the recovery of outstanding dues of Suppliers including Generating Companies, Transmission Companies and Traders," said the Power Ministry.

Discoms dues: 5 states took loan of Rs 16,812 cr, 8 states made their own arrangement

For payment of EMI of Rs 24,680 crore, five states took loan of Rs 16,812 crore from state-run Power Finance Corporation (PFC) and REC Limited and eight states opted to make their own arrangement, said the ministry.

Privatisation not the only solution to discoms woes: NTPC CMD

"Distribution companies are also paying their current dues in time to avoid regulations under the rule. Distribution companies have paid almost Rs 1,68,000 crore of current dues in the last five months," it added.

Jharkhand discom only utility under regulation for non-payment of dues

Presently, only one distribution utility, Jharkhand Bijli Vitran Nigam Limited (JBVNL), which is Jharkhand's largest discom, is under regulation for non-payment of current dues. "The outstanding dues of distribution companies on trigger date have been reduced to Rs 205 crore from Rs 5,085 crore as on 18.08.2022," said the Power Ministry.

Based on the results achieved so far, it is expected that strict implementation of the LPS Rules will bring back financial viability of the power sector in the country and would attract investment to ensure reliable 24×7 electricity to the consumers, the ministry said. "This Rule has not only ensured that the outstanding dues are liquidated but has also ensured that the current dues are paid in time. It may be seen that the Rule has played a vital role in ensuring the financial discipline in Discoms," it added.

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