Infrastructure
Legacy Dues Of Power Discoms Towards Generation Companies Down From Rs 1.38 Lakh Crore To Rs 91,061 Crore: Govt
Power transmission lines. (Flickr) (Representative image)
The government on Thursday (6 April) informed the Parliament that the legacy dues of power distribution companies (Discoms) to power generating companies have come down by around Rs 47,000 crore.
Citing information available on the PRAAPTI portal, the minister informed that the total dues of power distribution companies (DISCOMs) towards generating companies as on 28 March amounted to Rs 91,061 crore.
Further, the current dues, excluding disputed and before default trigger date, amounted to Rs 28,449 crore.
"Recognising the cash flow problems arising out of outstanding receivables of Generating Companies from DISCOMs and in order to increase basic payment discipline in the power sector value chain, sustenance of which has been matter of concern due to increasing receivables to GENCOs, Government of India promulgated Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 on 3 June 2022," the Union Power Minister R K said in a written reply to a question in the Lok Sabha.
These rules entailed obligations upon the DISOCMs to clear their legacy dues as existing on 3 June 2022 in a time bound phased manner in equated monthly instalments with benefits of non-applicability of late payment surcharge after the aforementioned date.
"These Rules also provide framework for time bound clearance of current dues through establishment of a Payment Security Mechanism and disincentives of progressive withdrawal of open access as well as power regulations if the provisions of the Rules are not followed," the minister said.
DISCOMs can avail loans from PFC Ltd. and REC Ltd. to clear their dues to generating companies, he said.
"With the implementation of Electricity (LPS and Related Matters) Rules, 2022, remarkable improvement has been seen in recovery of outstanding dues," the minister said.
"Against legacy dues of Rs 1,38,378 crores as on 3 June 2022, 13 states/ UTs have timely paid installment of Rs 47,317 crores (8 EMIs)," the Power Minister said.
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