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

According to data released by the Ministry of Power (MoP), at the end of February 2021, distribution companies (discoms) in India owed Rs 12,345 crore to renewable energy (RE) generators excluding disputed amounts in overdue payments across 206 pending invoices. The figures were slightly higher than those reported in January 2021, when discoms owed Rs 12,249 crore to renewable energy generators excluding disputed amounts in overdue payments across 384 pending invoices. According to MoP’s payment ratification and analysis portal (PRAAPTI), outstanding payments (excluding disputed amounts) to renewable generators stood at Rs 380 crore in February. Discoms paid nearly Rs 1,992 crore towards their outstanding dues and Rs 12,240 crore towards overdue amounts in February, a decrease of 2% and 8% compared to January 2021 The outstanding amounts are payments that have been delayed by over six months. As per the released data, 67 discoms owed 232 power generators Rs 91,532 crore against 22,978 overdue invoices in February 2021. Outstanding payments at the end of the month stood at Rs 11,134 crore, almost the same as January 2021. Rajasthan had the highest backlog among the states, with overdue payments to the tune of Rs 10,176 crore. Out of the total amount, 9,740 crore has been overdue for more than 60 days. Andhra Pradesh followed closely with an overdue amount of Rs 4,837 crore, out of which Rs 3,964 crore has been overdue for more than 60 days. Other states that performed poorly included Chandigarh, Delhi, Tripura, Nagaland, and Sikkim. Madhya Pradesh and Karnataka were rated ‘Bad’ in terms of ease of payments by the discoms. Maharashtra, Gujarat Telangana, Jharkhand, Tamil Nadu, Kerala, West Bengal, Bihar, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Assam, Arunachal Pradesh, Manipur, and Meghalaya were termed the ‘Best’ states in terms of ease of payments by the discoms in February 2021. Non-conventional energy generators who were owed the most by the discoms included Tata Power Company, Adani Green Energy, NLC India, and Hero Future Energies with Rs 2,347 crore, Rs 1,258 crore, Rs 1,135 crore, and Rs 808 crore, respectively.Discom dues to power generatorsDescriptionUp to February 2021Up to January 2021Percentage of chargeNumber of discoms67670%Number of participating power generators2322320%Number of overdue invoices22,97822,514-2%Overdue and outstandingRs (in crore)Rs (in crore)Percentage of chargeOverdue at the beginning of the month92,08293,5841.6%Total amount billed to discoms13,69213,7310.3%Amount paid by dicoms against overdue12,240 11,227-8%Amount paid by discoms against outstanding1,9921,962-2%Overdue amount at the end of the month91,53292,0921%Outstanding amount at the end of the month11,13411,0950% Source: PRAAPTI In February this year, the MoP issued new regulations regarding the late payment surcharge. A discom with a late payment surcharge outstanding against a bill after the expiry of seven months from the due date would now be debarred from procuring power from a power exchange or grant of short-term open access until such bill is paid. Image Source Also read: ICRA maintains negative outlook on power distribution sector Also read: Min of Power: PSUs can exit loss-making contracts