Power Gencos outstanding shares in discoms increase by 37% to Rs 70,000 cr in September

New Delhi, November 3 () The total outstanding quotas of the electricity producers owed by the distribution companies increased by about 37 percent to Rs 69,558 crore in September 2019 during the same month last year, reflecting Stress in the sector.

The distribution companies owed a total of Rs.5,583 million to the power generation companies in September 2018, according to the web portal and the application, namely PRAA (Ratification and analysis of payments in energy acquisitions to provide transparency in generators billing).

The portal was launched in May 2018 to provide transparency in energy purchase transactions between generators and discoms (distribution companies).

In September of this year, the total overdue amount, which was not compensated even after 60 days of grace period offered by the generators, stood at Rs 52,408 million rupees compared to Rs 34,658 million rupees in the same month of the year past.

Energy producers grant 60 days of time 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, the Center has implemented a payment security mechanism as of August 1. Under this mechanism, discoms are required to open letters of credit to obtain power supply.

The data on the portal indicates that the outstanding amount and the past due amount have decreased during the previous month. In August 2019, the total outstanding in the discoms was Rs 80,087 crore, while the total amount due was Rs 60,935 crore.

The quota and arrears figures for August 2019 have been revised upwards from Rs 78,020 million and Rs 59,532 million provisional numbers published last month on the portal.

The discomforts in Rajasthan, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu represent the majority of the quotas to the energy generating companies, and the portal showed a longer duration of up to 881 days.

Among the major states, Rajasthan tops the list with 881 days to make payments, followed by Haryana (879 days), Tamil Nadu (877 days), Madhya Pradesh (866 days) and Telangana (859 days) in that order.

Delhi, a smaller state, takes 908 days to make payments to power generating companies.

The arrears of independent energy producers amount to more than 23.06 percent of the total past due of Rs 52,408 million rupees on discoms.

Among the power generators of the central public sector, NTPC only has an expired amount of Rs.9,921.78 million in discoms, followed by NLC India in Rs 5,096.62 million, NHPC in Rs 2,492.03, THDC India in Rs 1,861.75 million and Damodar Valley Corporation Rs 980.59 million. Among private generators, telecommunications owes the largest delay of Rs 3,201.68 crore to Adani Power, followed by Lalitpur Power Generation Company Ltd, owned by Bajaj Group, Rs 2,212.66 crore and GMR Rs 1,930, 16 million rupees. KKS MKJ