+
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

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code