+
Liquidity infusion for discoms: Overdues fall Rs 15k cr in March
POWER & RENEWABLE ENERGY

Liquidity infusion for discoms: Overdues fall Rs 15k cr in March

According to data released by PFC Consulting Ltd, the outstanding overdue of power distribution companies (discoms) decreased by Rs 15,118 crore and stood at Rs 74,510 crore in March this year, compared to the preceding month, primarily due to the release of the second tranche of liquidity infusion package.

The overdue amount stood at Rs 89,628 crore in February. Power producers give 45 days to power distribution utilities (discoms) to pay bills for the electricity supply. After that, the outstanding dues become overdue, and generators charge penal interest on that in most cases.

In May last year, the government announced a Rs 90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from Power Finance Corporation (PFC) and REC Ltd.

This was a government initiative to help generation companies (gencos) to remain afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore and further to Rs 1.35 lakh crore. Under the liquidity package, the PFC and REC together have disbursed Rs 78,855 crore so far.

Overdue of discoms reduced significantly in March 2021, after PFC and REC began releasing the second tranche of disbursements under discom liquidity package in February this year, the data on the PRAAPTI portal said.

PFC Consulting Ltd is a division of state run Power Finance Corporation (PFC), which maintains the Payment Ratification and Analysis in Power procurement for bringing Transparency in Invoicing of generators (PRAAPTI).

The PRAAPTI portal was launched in May 2018 to bring in transparency in power purchase transactions between generators and discoms. It captures monthly invoicing data from power generators, which is uploaded from time to time on it by the power generators themselves.

The overdue amount as a multiple of average monthly billing also showed a marked improvement, from 5.1 times in February to 4.6 times in March 2021.

Among individual states, Andhra Pradesh, Uttar Pradesh, Telangana, Bihar and Manipur have improved their overdue situation in March compared to February 2021.

Image Source


Also read: Power gen and consumption see uptick in March: Care Ratings

Also read: Ministry of Power: Discoms owe Rs 12.3k cr to RE companies

According to data released by PFC Consulting Ltd, the outstanding overdue of power distribution companies (discoms) decreased by Rs 15,118 crore and stood at Rs 74,510 crore in March this year, compared to the preceding month, primarily due to the release of the second tranche of liquidity infusion package. The overdue amount stood at Rs 89,628 crore in February. Power producers give 45 days to power distribution utilities (discoms) to pay bills for the electricity supply. After that, the outstanding dues become overdue, and generators charge penal interest on that in most cases. In May last year, the government announced a Rs 90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from Power Finance Corporation (PFC) and REC Ltd. This was a government initiative to help generation companies (gencos) to remain afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore and further to Rs 1.35 lakh crore. Under the liquidity package, the PFC and REC together have disbursed Rs 78,855 crore so far. Overdue of discoms reduced significantly in March 2021, after PFC and REC began releasing the second tranche of disbursements under discom liquidity package in February this year, the data on the PRAAPTI portal said. PFC Consulting Ltd is a division of state run Power Finance Corporation (PFC), which maintains the Payment Ratification and Analysis in Power procurement for bringing Transparency in Invoicing of generators (PRAAPTI). The PRAAPTI portal was launched in May 2018 to bring in transparency in power purchase transactions between generators and discoms. It captures monthly invoicing data from power generators, which is uploaded from time to time on it by the power generators themselves. The overdue amount as a multiple of average monthly billing also showed a marked improvement, from 5.1 times in February to 4.6 times in March 2021. Among individual states, Andhra Pradesh, Uttar Pradesh, Telangana, Bihar and Manipur have improved their overdue situation in March compared to February 2021. Image Source Also read: Power gen and consumption see uptick in March: Care Ratings Also read: Ministry of Power: Discoms owe Rs 12.3k cr to RE companies

Next Story
Infrastructure Urban

India Expands Semiconductor Training To 500 Institutions

Under the Chips to Startups programme of the India Semiconductor Mission, the Union minister responsible for Railways, Information and Broadcasting, and Electronics and IT reported notable progress in talent development. He indicated that over the past four years substantial steps have been taken towards a 10-year target of training 85,000 engineers in semiconductor design. World-class EDA tools have been deployed in 315 academic institutions across the country to provide students with practical exposure to chip design. These EDA tools are supported by leading global firms and are accessible t..

Next Story
Infrastructure Urban

Delhi Institutions Support India Semiconductor Mission

The Government of India has prioritised talent development through training, upskilling and workforce development under the Chips to Startups initiative of the India Semiconductor Mission, with officials noting progress in four years towards a 10-year target of training 85,000 engineers in semiconductor design. Electronic design automation tools provided by Synopsys, Cadence, Siemens, Renesas, Ansys and AMD have been deployed in 315 academic institutions, enabling students to gain practical chip design experience. Chips have been fabricated and tested at the Semiconductor Laboratory, Mohali, a..

Next Story
Infrastructure Urban

NHA Announces Winners Of NHCX Hackathon At IIT Hyderabad

The National Health Authority (NHA) has concluded the NHCX Hackathon under the Ayushman Bharat Digital Mission (ABDM) to stimulate innovation around the National Health Claims Exchange (NHCX). The winning teams presented their solutions at the NHCX Innovation Meet held at IIT Hyderabad during a two-day event in March 2026 that also served as the hackathon grand finale. The hackathon itself ran from 22 to 28 February 2026 and aimed to accelerate paperless, transparent claims processing across India. The event was organised with a range of ecosystem partners, including the Insurance Regulatory a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement