Distribution companies (DISCOMs) owed renewable generators ₹209.16 billion (~$2.74 billion) in overdue payments (excluding disputed amounts) at the end of March 2022, according to the data released by the Ministry of Power.
The figure reported was 2% higher than ₹205.17 billion (~$2.68 billion) at the end of February 2022.
Overdue amounts are dues 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 to renewable generators at the end of the month dropped (76%) to ₹942.80 million (~$12.39 million). At the end of February, the amount was ₹3.92 billion (~$51.21 million).
Dues that remain partially or entirely unpaid but are still not past their due dates (less than 60 days) are considered outstanding dues.
At the end of the month, DISCOMs owed all power generators an overdue amount equivalent to ₹1.09 trillion (~$14.33 billion), an increase of 5% from ₹1.03 trillion (~$13.54 billion) at the end of February 2022.
The outstanding amount at the end of March 2022 stood at ₹113.76 billion (~$1.49 billion), a decrease of 37% from ₹181.94 billion (~$2.39 billion) at the end of February.
For March, the DISCOMs released ₹117.25 billion (~$1.54 billion) against the overdue amount, a decrease of 29% compared to ₹165.14 billion (~$2.17 billion) during February. The DISCOMs released ₹35.48 billion (~$466.68 million) against the outstanding amount, marking a decrease of 22% from ₹45.34 billion (~$596.21 million) in February.
At the end of the month, the three renewable generators that DISCOMs owed the most to were Adani Green Energy, Hero Future Energies, and Tata Power Company.
Among the states, Tamil Nadu had the highest backlog with an overdue amount of ₹202.98 billion (~$ 2.66 billion), followed closely by Maharashtra and Rajasthan, with ₹172.13 billion (~$2.26 billion) and ₹108.19 billion (~$1.42 billion), respectively.
In terms of ease of doing business with the DISCOMs, Jammu & Kashmir and Meghalaya were at the lowest rung. Other states that did badly during the month were Tamil Nadu, Andhra Pradesh, Rajasthan, and Jharkhand.
The states that performed well during the month were Himachal Pradesh, Uttarakhand, Assam, Arunachal Pradesh, Nagaland, Chhattisgarh, Odisha, Gujarat, Goa, and Kerala.
Union Power Minister RK Singh outlined the various steps taken by the government to help improve the financial health of DISCOMs in a written reply in Rajya Sabha. The minister added REC Limited and the Power Finance Corporation had disbursed loans to the tune of ₹1.03 trillion (~$13.78 billion) to power generators, independent power producers, and renewable generators. Under the long-term transition loans, the disbursement has been linked with DISCOMs undertaking specified reform measures.
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Arjun Joshi is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. More articles from Arjun Joshi.