DISCOM Dues to Power Generators Dropped to Rs 6.16 Bn

05 Feb 2025 CW Team

Distribution companies (DISCOMs) owed power generators Rs 615.95 billion (~$7.07 billion) in total dues for the monthly billing cycle in January 2025, according to the Ministry of Power’s payment ratification and analysis portal PRAAPTI. The DISCOMs owed power generators Rs 672.91 billion (~$7.72 billion) in December. The trigger date is one month after the payment due date or two and a half months after the generating company presents the bill, whichever is later. The DISCOMs are allowed to pay the outstanding amount in up to 48 installments. The Grid Controller of India released an updated procedure to implement the Electricity (Late Payment Surcharge and Related Matters) Rules 2022 and subsequent amendments. The procedure applies to intra-state and inter-state generators, licensees, and distribution entities, focusing on payment security, power scheduling, and addressing non-payment scenarios. In October 2024, the Ministry of Power issued the Electricity Distribution (Accounts and Additional Disclosure) Rules to improve transparency in financial disclosures and support regulatory compliance for DISCOMs. The rules aim to ensure financial safeguards against long-term defaults by mandating provisions for receivables and enforcing the reporting of trade receivable days.

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