New Delhi: Just months after the Centre announced a bailout package of Rs 90,000 crore for discoms, the total outstanding dues owed by discoms to gencos rose 3.83 percent month-on-month (m-o-m) in September to Rs 1.27 lakh crore. According to an analysis done by PSU Watch of the data available on the Ministry of Power's Praapti portal, the increase in outstanding dues has been consistent, except for an aberration in July. In comparison to the immediate aftermath of the Covid-19 breakout in India, there has been a decline in the percentage increase in dues. However, the bailout package announced by the government is yet to bear fruits as except for July, discoms have seen their outstanding dues rise every month in the H1 period of FY2020-21.
Central PSUs Power Finance Corporation (PFC) and REC Ltd had disbursed Rs 24,674 crore out of the sanctioned amount of Rs 68,164 crore to discoms under the Rs 90,000-crore bailout package, Union Power Minister RK Singh had told the Rajya Sabha on September 16.
According to the data sourced from the Ministry of Power, the increase in outstanding dues in August m-o-m was lower at 1.83 percent in comparison to September. The only aberration in the data for calendar year 2020 has occurred in July so far when discoms saw their dues decreasing by a nominal 0.12 percent. Barring July, the figures have seen an increase throughout the year. In the immediate aftermath of the breakout of COVID-19 pandemic in India, discom dues rose 7.71 percent in April (m-o-m) and further by 11.39 percent in May (m-o-m), data showed.
The power sector is under financial stress mainly due to discoms' inability to pay power generating companies, which in turn, are unable to pay companies further down the chain, like Coal India, which supplies around 80 percent of its total supplies to the power sector. The bailout package announced by the Centre has conditions attached for availing the loan like digitisation of processes and concerted efforts to check pilferage and inefficiencies in the system. The Ministry of Power has also been looking to lower the late payment surcharge for discoms as part of a slew of reforms being planned to alleviate the financial stress in the power sector.
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