Power producers' total outstanding dues owed by distribution firms rose by almost 63% to Rs 1,23 trillion in April 2020 over the same month of the previous year, reflecting the sector 's stress.
Distribution companies (discoms) owed a total of Rs 75,642 crore to power generation companies in April 2019, according to the PRAAPTI portal (Payment Ratification and Analysis in Power Procurement for Transparency in Generator Invoicing).
The portal was launched in May 2018 to bring transparency to power purchase transactions between generators and discoms.
In April 2020, the total amount owing, which was not cleared even after 60 days of the grace period offered by the generators, stood at Rs 1,08,487 crore compared to Rs 58,200 crore in the same month of the preceding year.
According to the latest data on the portal, the total outstanding fees in April have increased over the previous month. In March 2020, the total discom dues stood at Rs 1,13,048 crore.
The amount owing in April 2020 also increased from Rs 1,01,181 crore in March 2020.
Power producers give 60 days to discom for the payment of electricity bills. After that, outstanding fees have become obsolete and, in most cases, generators charge criminal interest on them.
In order to provide relief to power generation companies (gencos), the Center implemented a payment security mechanism as of 1 August 2019. Under this mechanism, discoms are required to open letters of credit for power supply.
In view of Covid's 19-induced lockdown, the central government granted a moratorium on discomfort for paying for power-generating companies (gencos). The Government also waived the penalties for late payment of fees in the Directive.
Last month , the Government announced an infusion of Rs 90,000 Crore Liquidity for discomfort under which these utilities would receive loans at economic rates from Power Finance Corporation and REC Ltd. This was the government's initiative to help the gencoes stay afloat.
The data showed that discoms in Rajasthan, Uttar Pradesh, Jammu & Kashmir, Telangana, Andhra Pradesh , Karnataka and Tamil Nadu account for the major portion of power genes.
Overdues of independent power producers amounted to 37% of the total outstanding of Rs 1,08,387 in January. The proportion of central PSU genes in the past was 35.47%.
Among the central public sector power generators, NTPC alone has an overrun of Rs 19,138.38, followed by NLC India at Rs 6,246.22 crore, NHPC at Rs 3,668.41 crore, THDC India at Rs 2,384.70 crore and Damodar Valley Corporation at Rs 1,442.03 crore.
Among private generators, discoms owe the highest outstanding value of 20,346.99 crore to Adani Power followed by RKMP (RKM Powergen Pvt Ltd) at Rs 3,421.68, Bajaj Group owned by Lalitpur Power Generation Company Ltd at Rs 3,187.25 crore and GMR at Rs 1,930.16 crore.
The late non-conventional energy producers, such as solar and wind, stood at Rs 8.409.93 crore in April.
