Distribution companies (DISCOMs) owed over ₹110.67 billion (~$1.5 billion) to renewable energy generators (excluding disputed amounts) in overdue payments across 439 pending invoices, according to data from the Ministry of Power (MoP).
This represented a slight increase from September when DISCOMs owed renewable power developers ₹106.7 billion (~$1.43 billion) in overdue payments across 460 invoices. Outstanding payments (excluding disputed amounts) in October stood at ₹5.76 billion (~$78.3 million), according to data from the MoP’s payment ratification and analysis portal (PRAAPTI),
As per the portal, 229 DISCOMs owed power generators in the country about ₹1.25 trillion (~$16.9 billion) in overdue payments spread across 21,045 invoices at the end of October 2020. Outstanding payments at the end of the month stood at ₹124.3 billion (~$1.69 billion).
During the month, DISCOMs paid about ₹118.3 billion (~$1.6 billion) against their overdue payments and about ₹19.79 billion (~$269 million) towards their outstanding dues. The total amount billed to DISCOMs stood at ₹153.8 billion (~$2.07 billion) in October, up from ₹147.1 billion (~$1.9 billion) in September.
Rajasthan had racked up the highest amount of overdue payments at ₹383.3 billion (~$5.2 billion), of which ₹28 billion (~$380.6 million) has been pending for less than 60 days and the remaining ₹355.3 billion (~$4.8 billion) pending for over 60 days.
Tamil Nadu had the second-highest dues with about ₹204.7 billion (~$2.8 billion) of overdue payments. ₹19.5 billion (~$265.1 million) has been pending for less than 60 days, while the remaining ₹185.2 billion (~2.5 billion) has been pending for over 60 days. The state was rated “medium” in terms of ease of payments by DISCOMs.
Haryana, Uttarakhand, Delhi, Rajasthan, Madhya Pradesh, Jharkhand, Chhattisgarh, Odisha, Sikkim, Nagaland, Tripura, Andhra Pradesh, Goa, Karnataka, and Kerala were rated “worst in terms of ease of payments.
Uttar Pradesh, Bihar, and Telangana were rated “Good,” while Himachal Pradesh, Arunachal Pradesh, Manipur, and Mizoram were rated the “Best” in terms of ease of payments.
Adani Green Energy Limited, NLC India Limited (RE), and Tata Power Company Limited remained the three non-conventional power generators that were owed the highest dues at around ₹12 billion (~$163.1 million), ₹10.8 billion (~$146.8 million), and ₹22.3 billion (~$303.1 million), respectively.
Last month, DISCOMs owed over ₹106.7 billion (~$1.43 billion) to renewable energy generators (excluding disputed amounts) in overdue payments across 460 pending invoices.
Earlier this year, the Power Finance Corporation Limited approved ₹306.07 billion (~$4.09 billion) and REC limited approved another ₹300 billion (~$4 billion) as of July 31, 2020, as part of the ₹900 billion (~$12.03 billion) liquidity package announced by the government for eligible DISCOMs in May.
Mercom has previously written about how privatizing struggling DISCOMs could help them out of their financial troubles and push the Indian power sector forward.
Earlier today, the High Court of Punjab and Haryana issued a stay order on the Central Government’s proposal to privatize Chandigarh’s electricity distribution company (DISCOMs), calling the move ‘unjust and illegal.’
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Nithin Thomas is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.