Power producer NTPC will give Rs 1,363 crore discount to distribution companies (discom) on fixed or capacity charges during the lock-down period of this fiscal year, the state-run company said on Wednesday.
The NTPC Board also approved the deferral of collection of Rs 2,064 crore fixed charges from discom until the end of the lockdown, imposed to contain the coronavirus pandemic. The charges would be collected in three equal installments without interest, the PSU said.
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Fixed charges are paid under the power purchase agreement for the cost of setting up a power plant.
The collection of revenues from power distribution companies was affected by reduced industrial activity after the lockdown was imposed to contain the spread of COVID-19 in the country.
Last month , the government announced a liquidity infusion of Rs 90,000 crore through REC and Power Finance Corp into crisis-hit divestments. The liquidity shot would be securitised against customer distress receivables.
NTPC said that its Board of Directors, at a meeting on 9 June 2020, "approved deferral of capacity charges of Rs 2,064 crore to DISCOMs to be charged without interest after the completion of the lock-up period in three equal monthly installments."
The Board also approved a rebate of Rs 1,363 crore on capacity charges paid during the lock-down period to discoms on behalf of COVID-19, as reported in the financial year 2020-21.
On 17 May, the PSU announced that it would consider deferring capacity charges and rebates to distribution companies and a rebate of 20-25% on fixed charges to discom under the direction of the Power Ministry.
Earlier last month, talking about the recent relief given to discoms reeling under financial stress due to a slump in demand in the middle of the lockdown, Power Minister R K Singh said that power generators from the central public sector (CPSU) had been asked to defer fixed charges from discom.
“After the economy opens up, those fixed charges would be paid by discoms in equal installments without interest. This would be huge relief
“We have asked our CPSUs (gencos) to give 20 to 25 per cent discount to discoms on cost of power. We want discoms to pass it on to consumers. This will be reflected in the first bill of the consumers after the economy reopens (after lockdown is over),” he had said.
