Distribution companies (DISCOMs) owed renewable energy generators ₹237.06 billion (~$3 billion) in overdue payments (excluding disputed amounts) at the end of July, according to Ministry of Power data.

The figure marked an increase of nearly 18% compared to ₹200.37 billion (~$2.53 billion) at the end of June 2022.

Overdue amounts are payments that are past their due date (between 45-60 days) and remain partially or entirely unpaid.

As per the data released by the Ministry of Power’s payment ratification and analysis portal PRAAPTI, the outstanding amount to renewable generators at the end of the month increased by 17% to ₹12.37 billion (~$156.42 million). At the end of June, the amount was ₹10.61 billion (~$134.17 million).

At the end of July, DISCOMs owed power generators ₹1.14 trillion (~$14.44 billion), increasing 8.7% from ₹1.05 trillion (~$13.29 million) at the end of June.

The DISCOMs released ₹143.15 billion (~$1.81 billion) in overdue amounts, a decrease of 42.6% compared to ₹249.23 billion (~$3.15 billion) in June.

They also released ₹54.99 billion (~$695.37 million) against the outstanding amount, down by 30% compared to ₹78.55 billion (~$993.29 million) in June.

At the end of July, the renewable energy generators that DISCOMs owed the most were Adani Green Energy, ACME Solar, Hero Future Energies, and Tata Power Company.

Among the states, Tamil Nadu had the highest backlog with an overdue amount of ₹237.82 billion (~$3.01 billion), followed by Telangana and Maharashtra, with ₹184.66 billion (~$2.34 billion) and ₹176.93 billion (~$2.24 billion), respectively.

In terms of ease of doing business, the states at the bottom were Jammu and Kashmir, Meghalaya, and Telangana. Other states that performed badly during the month were Jharkhand, Andhra Pradesh, and Tamil Nadu. The states that did well during the month were Gujarat, Punjab, Haryana, Himachal Pradesh, Uttarakhand, Bihar, Chhattisgarh, Goa, Odisha, Assam, Arunachal Pradesh, and Nagaland.

Ministry of Power had launched the reforms-based and results-linked, revamped distribution sector program with an outlay of ₹3.03 trillion (~$40.82 billion) to improve the operational efficiencies and financial sustainability of DISCOMs by providing financial assistance for modernization and strengthening of distribution infrastructure. The program also aims to improve the reliability and quality of supply to end consumers. According to the Ministry, 39 out of 55 DISCOMs have submitted draft proposals under the program. Meghalaya and Assam were the frontrunners in planning operational and financial reforms.

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