Economy

Discoms’ dues to power firms rise 57% in July

PTI New Delhi | Updated on September 15, 2019 Published on September 15, 2019

The outstanding dues of distribution utilities twoards power producers have risen by over 57 per cent to ₹73,748 crore in July this year, as compared to the same month last year, showing stress in the sector.

According to the PRAAPTI portal, distribution companies (Discoms) owed a total of ₹46,779 crore to power generation companies in July 2018. The portal was launched in May 2018 to bring transparency in power purchase transactions between generators and discoms.

The total overdue amount this July, which was not cleared even after 60 days of grace period offered by generators, stood at ₹54,342 crore as against ₹30,331 crore in the same month in 2018.

In order to give relief to power generation companies, the Centre has enforced a payment security mechanism from August 1. Under this mechanism, Discoms are required to open letters of credit for getting power supply.

The data on the portal indicates that the outstanding as well as overdue amount has increased over the preceding month. In June 2019, the total outstanding on discoms was ₹69,905 crore, while the total overdue amount was ₹51,748 crore.

Published on September 15, 2019
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