Distribution companies (DISCOMs) owed ₹141.44 billion (~$1.94 billion) to renewable energy generators (excluding dispute amounts) in overdue payment across 259 pending invoices at the end of July 2021, according to data released by the Ministry of Power (MoP).

The figure was 16% higher than ₹121.9 billion (~$1.63 billion) spread across 256 pending invoices at the end of June 2021.

As per the data released by the MoP’s payment ratification and analysis portal PRAAPTI, the outstanding payments to renewable power generators stood at ₹11.93 billion (~$163.22 million) at the end of July 2021. The figure was ₹9.58 billion (~$128.87 million) at the end of June 2021.

DISCOMs paid around ₹36.46 billion (~$498.83 million) in outstanding amounts to power generators, a decrease of 1%, and ₹145.58 billion (~$1.99 billion) in overdue amounts, increasing by 12% when compared to the June figures.

According to the released data, the overdue amount to power generators at the end of July 2021 stood at ₹940.05 billion (~$12.86 billion), an increase of 4% compared to the June figures.

At the end of July, the outstanding amount was ₹134.4 billion (~$1.84 billion), a drop of 16% compared to the previous month.

Among the states, Tamil Nadu had the highest backlog at the end of the month with an overdue amount of ₹199.44 billion (~$2.73 billion), followed by Maharashtra and Rajasthan with an overdue amount of ₹177.12 billion (~$2.42 billion) and ₹114.22 billion (~$1.56 billion), respectively.

In terms of ease of doing business with DISCOMs, Jammu and Kashmir and Meghalaya were the worst-performing states. Other states that performed badly during the month were Tamil Nadu, Maharashtra, Rajasthan, Karnataka, Telangana, Jharkhand, and Andhra Pradesh. Some of the better performing states for the month were Uttarakhand, Himachal Pradesh, Gujarat, Chhattisgarh, Assam, Arunachal Pradesh, Nagaland, and Goa.

Non-conventional energy generators to whom the DISCOMs owed the most amount at the end of the month included Tata Power, Adani Green Energy, and Hero Future Energies, with ₹25.24 billion (~$345.33 million), ₹19.14 billion (~$261.87 million), and ₹10.89 billion (~$148.99 million), respectively.

In July this year, the MoP issued detailed guidelines for reform-based result-linked power distribution program over the next five years. The program aims to improve the quality and the reliability of power supply to consumers through a financially sustainable and operationally efficient distribution sector. The plan is to reduce the aggregate technical and commercial losses across India to 12-15% and eliminate the gap between the average supply cost and the aggregate revenue requirement by 2024-25.