Sunday, October 2, 2022

Dues owed by discoms swell by 57% in August

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New Delhi: The total amount of dues owed by discoms (distribution companies) to power generating companies rose by a whopping 57 percent in August as compared to the corresponding month a year ago. The total outstanding dues stood at Rs 78,020 crores in August, after the expiry of the 60-day grace period, reflecting the growing stress in the sector. According to a web portal and app named PRAAPTI (Payment Ratification and Analysis in Power Procurement for Bringing Transparency in Invoicing of generators), discoms owed Rs 49,669 crore to power generation companies in August 2018. The website was launched in May last year to bring in transparency in power purchase transactions.

Dues owed by discoms rise

The data available on the website indicates that the outstanding, as well as overdue amounts, have witnessed a rise over the preceding month. In July, the total outstanding on discoms was Rs 76,467 crores, while the total overdue amount was Rs 56,556 crores. The July 2019 figures have been revised upwards from Rs 73,748 crores and Rs 54,342 crores provisional numbers released last month on the portal. In June, the government gave a nod to a proposal for the implementation of a payment security mechanism for the purchase of electricity by distribution companies (discoms) from power generating firms to relieve the stress in the sector.

The tally

Discoms in Rajasthan, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu account for a major chunk of the outstanding dues to power generating companies. Andhra Pradesh is at the helm of the list with 852 days to make payments, followed by Rajasthan (851 days), Haryana (849 days), Madhya Pradesh (836 days) Telangana (829 days) and Tamil Nadu (823 days) in that order. Delhi takes 878 days to make payments to power generating firms. Data showed that overdue of independent power producers comprise 24.6 percent of the total overdue of Rs 59,532 crore on discoms.

Several PSUs yet to recover dues from discoms

There are several public sector power generators on the list who are waiting for their dues to be cleared. NTPC alone has an overdue amount of Rs 8,452.58 crores on discoms, followed by NLC India at Rs 4,691.49 crores, NHPC at Rs 2,324.05 crores, THDC India at Rs 1,936.11 crores and Damodar Valley Corporation at Rs 805.71 crore. Among private generators, discoms owe the highest overdue of Rs 3,794.49 crores to Adani Power, followed by Bajaj Group-owned Lalitpur Power Generation Company Ltd at Rs 2,212.66 crores and GMR at Rs 1,829.68 crores.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

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