The distribution companies (DISCOMs) owed renewable generators nearly ₹103.11 billion (~$1.4 billion) in overdue payment (excluding dues under dispute) spread across 579 invoices at the end of July 2020, according to data from the Ministry of Power (MoP).
Per the data released by PRAAPTI, the outstanding dues to renewable generators stood at ₹7.17 billion (~$97.25 million), with ₹123.7 million (~$1.68 million) under dispute.
Distribution companies owed renewable generators ₹101.11 billion (~$1.3 billion) in overdue payments (excluding dues under dispute) spread across 544 invoices at the end of June 2020.
The government portal also showed that 65 DISCOMs owed ₹1.17 trillion (~$15.87 billion) in overdue payments spread across 18,658 invoices at the end of July 2020. In June, 65 DISCOMs owed power generators ₹1.16 trillion (~$15.78) in overdue payments spread across 18,281 invoices.
The DISCOMs paid ₹139.3 billion (~$1.9 billion) against the overdue amount, an increase of 86% when compared to June and ₹16.9 billion (~$230 million) against the outstanding dues at the end of July 2020. The overdue amount at the end of July stood at ₹1.17 trillion (~$15.95 billion), and the outstanding amount stood at ₹126.73 billion (~$1.73 billion).
The state of Rajasthan registered the highest backlog with an overdue amount of ₹356.26 billion (~$4.8 billion), out of which ₹331.47 billion (~$4.49 billion) have been unpaid for more than 60 days.
Tamil Nadu followed with an overdue amount of ₹190.64 billion (~$2.58 billion), out of which, ₹168.07 billion (~$2.28 billion) have been overdue for more than 60 days. Uttar Pradesh was another state that had a huge backlog, with an overdue amount of ₹132.87 billion (~$1.8 billion), out of which ₹107.83 billion (~$1.46 billion) have been unpaid for more than 60 days.
Going by the report, Arunachal Pradesh, Manipur, Tripura, Chhattisgarh, and Himachal Pradesh were termed as the ‘best’ states in terms of ease of payments by DISCOMs. Bihar, West Bengal, and Meghalaya were termed as ‘good.’
The portal rated the states of Assam, Nagaland, Rajasthan, Madhya Pradesh, Maharashtra, Telangana, Karnataka, Odisha, Kerala, Jharkhand, Goa, Delhi, Himachal Pradesh, Uttarakhand, and Jammu and Kashmir as the ‘worst’ states for ease of payments by the DISCOMs.
As per the data, Adani Green Energy Limited, Tata Power Company, and NLC India Limited were owed amounts of ₹12.01 billion (~$162.89 million), ₹13.78 billion (~$186.9 million), and ₹19.62 million (~$266.1 million) respectively.
The Ministry of Power recently suggested that the power generation and transmission companies should reduce the late payment surcharge up to 12% annually for distribution companies. This suggestion would apply to all late payments made under the liquidity infusion program.
REC Limited recently reported that it had approved over ₹300 billion (~$4 billion) to distribution companies in the country as of July 31, 2020. Similarly, PFC approved ₹306.07 billion (~$4.09 billion) as of July 31, 2020, as part of the liquidity package for DISCOMs.
Rakesh 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.