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 Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?