Power discoms owe Rs 1 trillion to gencos till February 2022
POWER & RENEWABLE ENERGY

Power discoms owe Rs 1 trillion to gencos till February 2022

Power distribution companies (discoms) owe Rs 1 trillion to power generating companies (gencos) till the end of February 2022.

According to data on the PRAAPTI Portal, at the end of February 2022, a total outstanding amount of Rs 1,00,931 crores is due from discoms.

The outstanding amount becomes overdue after 45 days of raising the bill for power supply by power generating companies (gencos).

The Minister of Power, R K Singh, told the media that the government had taken initiatives to improve financial and operational efficiencies of discoms linked to reform measures such as Liquidity Infusion Scheme (LIS), additional borrowing of 0.5% of gross state domestic product (GSDP) to states linked to power sector reforms, introducing additional prudential norms for lending by Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) based on the performance of power utilities, and Revamped Distribution Sector Scheme (RDSS).

The government had also issued an order, opening and maintaining Letter of Credit (LC) as payment security under power purchase agreement (PPA) by Distribution Licensees.

This order directs National Load Dispatch Centre (NLDC) and Regional Load Dispatch Centres (RLDC) to dispatch power only after intimating by genco and discom confirming the LC.

The Minister said that these government initiatives would improve the financial health of discoms, improve liquidity and reduce the outstanding dues to gencos. Singh said that as per projections of the Central Electricity Authority (CEA), the share of coal-based thermal power generation capacity in 2030 would be around 32% in the energy mix, compared to the current share of 52%.

He added that 36.79 crores LED bulbs were distributed till 16 March 2022, which led to 47,784 million units of electricity savings per annum, peak demand reduction of 9,566 MW and reduced carbon emissions to 38.70 million tonnes (mt) annually.

Singh said that Energy Efficiency Services Limited (EESL) has installed over 1.23 crore LED street lights in urban local bodies (ULBs) and gram panchayats in India, saving 8,516.7 million units of electricity per annum, peak demand reduction of 1,419.45 MW and reduced emissions to 5.87 mt annually.

Image Source

Also read: MP's Discoms receives Rs 15000 cr for improving sustainability

Power distribution companies (discoms) owe Rs 1 trillion to power generating companies (gencos) till the end of February 2022. According to data on the PRAAPTI Portal, at the end of February 2022, a total outstanding amount of Rs 1,00,931 crores is due from discoms. The outstanding amount becomes overdue after 45 days of raising the bill for power supply by power generating companies (gencos). The Minister of Power, R K Singh, told the media that the government had taken initiatives to improve financial and operational efficiencies of discoms linked to reform measures such as Liquidity Infusion Scheme (LIS), additional borrowing of 0.5% of gross state domestic product (GSDP) to states linked to power sector reforms, introducing additional prudential norms for lending by Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) based on the performance of power utilities, and Revamped Distribution Sector Scheme (RDSS). The government had also issued an order, opening and maintaining Letter of Credit (LC) as payment security under power purchase agreement (PPA) by Distribution Licensees. This order directs National Load Dispatch Centre (NLDC) and Regional Load Dispatch Centres (RLDC) to dispatch power only after intimating by genco and discom confirming the LC. The Minister said that these government initiatives would improve the financial health of discoms, improve liquidity and reduce the outstanding dues to gencos. Singh said that as per projections of the Central Electricity Authority (CEA), the share of coal-based thermal power generation capacity in 2030 would be around 32% in the energy mix, compared to the current share of 52%. He added that 36.79 crores LED bulbs were distributed till 16 March 2022, which led to 47,784 million units of electricity savings per annum, peak demand reduction of 9,566 MW and reduced carbon emissions to 38.70 million tonnes (mt) annually. Singh said that Energy Efficiency Services Limited (EESL) has installed over 1.23 crore LED street lights in urban local bodies (ULBs) and gram panchayats in India, saving 8,516.7 million units of electricity per annum, peak demand reduction of 1,419.45 MW and reduced emissions to 5.87 mt annually. Image Source Also read: MP's Discoms receives Rs 15000 cr for improving sustainability

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?