Economy

Coronavirus expected to have major impact on private power sector players: Indian Chamber of Commerce

Our Bureau Mumbai | Updated on April 01, 2020 Published on April 01, 2020

Coronavirus pandemic is expected to have a major impact on the private power sector players due to delayed payments made by the distribution companies to generation companies.

Power producers' total outstanding dues stood at Rs 88,311 crore in January 2020, which is a clear reflection of stress in the sector, Indian Chamber of Commerce (ICC) in a media statement.

The statement pointed out that The National Load Dispatch Centre data has shown that the peak power demand has come down by about 46,000 MW since March 20, which would further aggravate the ailing electricity generators.

The ICC feels that the slump in power demand is unlikely to improve drastically until end of next month. Besides, the government has asked the power generators to continue supplying power even if they do not pay for next three months. More, the penalty on late payment has been waived off till June 30. In these circumstances, there would be pressure on power generating firms to ensure uninterrupted power supply 24X7, the statement said.

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Published on April 01, 2020
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