The outstanding shares of Discoms for energy gencos increase by 45% to Rs 81,085 crore in November
NEW DELHI: The total outstanding shares of energy producers owed by distribution companies increased by around Rs 81.08 billion in November 2019 compared to the same month of the previous year, reflecting the stress on the sector.
The distribution companies (discoms) owed a total of 54,834 million rupees to the power generation companies in November 2018, according to the PRAAPTI portal (Ratification and analysis of payments in energy acquisitions for providing transparency in generators billing) .
The portal was launched in May 2018 to provide transparency in energy purchase transactions between generators and discoms.
In November 2019, the total amount due, which was not compensated even after 60 days of grace period offered by the generators, was Rs 71,782 crore against Rs 41,503 crore in the same month of the previous year.
Energy producers grant 60 days to pay bills for electricity supply. After that, the outstanding fees become overdue and the generators charge criminal interest on that in most cases.
To provide relief to power generation companies (gencos), the Center imposed a payment security mechanism as of August 1. Under this mechanism, discoms are required to open letters of credit to obtain power supply.
According to the latest data from the portal, the outstanding fees in November increased during the previous month. In October 2019, the total outstanding quotas on discoms amounted to Rs 80,635 crore.
The amount due in November also increased during the previous month. The total amount overdue was Rs 70,477 million in October 2019.
Discoms in Rajasthan, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu The data showed that most of the fees to feed the gencos take a longer duration of up to 943 days to make payments.
Among major states, Andhra Pradesh tops the list with 943 days to make payments, followed by Rajasthan (942 days), Bihar (942 days), Haryana (940 days), Tamil Nadu (938 days), Madhya Pradesh (927 days) and Telangana (920 days).
Delhi takes 969 days to make payments to the energy gencos.
Arrears of independent energy producers account for more than 26 percent of the past-due total of Rs 71,782 crore on discoms in November 2019.
Among the power generators of the central public sector, NTPC it only has an expired amount of Rs 12,483.16 million rupees in discoms, followed by NLC India in Rs 4,380.22 rupees, NHPC in Rs 3,165.11 rupees, THDC India in Rs 2,078.30 million rupees and Damodar Valley Corporation in Rs 936.59 rupees.
Among private generators, the inconveniences owe the greater delay of Rs 3,201.68 crore to Adani Power , followed by Lalitpur Power Generation Company Ltd, owned by Bajaj Group, with Rs 2,212.66 rupees and GMR with Rs 1,930.16 rupees.