Distribution companies (DISCOMs) owed renewable generators ₹200.44 billion (~$2.63 billion) in overdue payments (excluding disputed amounts) at the end of April, according to the data released by the Ministry of Power.
The figure marked a 4% decline compared to ₹209.16 billion (~$2.74) at the end of March 2022.
Overdue amounts are payments that are past their due date (between 45-60 days) and remain partially or entirely unpaid.
According to the data released by the Ministry of Power’s payment ratification and analysis portal PRAAPTI, the outstanding amount or current dues to renewable generators at the end of the month increased by 82% to ₹1.71 billion (~$22.38 million). At the end of March, the amount was ₹942.8 million (~$12.34 million).
At the end of April, DISCOMs owed power generators an overdue amount equivalent to ₹1.08 trillion (~$14.18 billion), an increase of 6% from ₹1.02 trillion (~$13.37 billion) at the end of March 2022.
The outstanding amount at the end of April 2022 stood at ₹124.55 billion (~$1.63 billion), 22% less than the ₹159.94 billion (~$2.1 billion) at the end of March.
The DISCOMs released ₹94.21 billion (~$1.24 billion) against the overdue amount in April, marking a decrease of 53% compared to ₹201.75 billion (~$2.65 billion) during March. The DISCOMs released ₹35.91 billion (~$469.93 million) against the outstanding amount, 39% lower than the ₹58.92 billion (~$771.26 million) in March.
At the end of the month, the renewable energy generators that DISCOMs owed the most were Adani Green Energy, Hero Future Energies, and Tata Power Company.
Among the states, Tamil Nadu had the highest backlog with an overdue amount of ₹212.72 billion (~$2.78 billion), followed by Maharashtra and Rajasthan, with ₹177.66 billion (~$2.33 billion) and ₹111.9 billion (~$1.46 billion), respectively.
In terms of ease of doing business with the DISCOMs, Jammu and Kashmir and Meghalaya were at the lowest rung. Other states that performed badly during the month were Telangana, Andhra Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Jharkhand.
During the month, the states that did well were Himachal Pradesh, Uttar Pradesh, Uttarakhand, Assam, Odisha, Chhattisgarh, Goa, Nagaland, Bihar, Gujarat, Goa, Arunachal Pradesh, and Kerala.
Last December, the Ministry of Power announced that 39 out of 55 electricity DISCOMs had submitted draft proposals under the ₹3.03 trillion (~$40.82 billion) reforms-based result-linked power distribution program. The Ministry of Power had launched the program to improve the operational efficiencies and financial sustainability of DISCOMs by providing financial assistance for the modernization and strengthening of distribution infrastructure.
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Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.