The implementation of late payment surcharge (LPS) rules has led to an improvement in recovering outstanding dues of suppliers including Gencos, transmission companies and traders with dues declining by ₹24,680 crore, Power Ministry said on Wednesday.
With the implementation of electricity (LPS and Related Matters) rules, 2022, remarkable improvement has been seen in recovery of outstanding dues of suppliers including generating companies, transmission companies and traders, the Ministry said in a statement.
“The total outstanding dues of States which were at ₹1,37,949 crore as on June 3, 2022, have been reduced by ₹24,680 crore to ₹1,13,269 crore with the timely payment of just four EMIs. For payment of EMI of ₹24,680 crore, five States have taken loans of ₹16,812 crore from PFC and REC and eight States have opted to make their own arrangement,” it added.
Distribution companies (Discoms) are also paying their current dues in time to avoid regulations under the rule. They have paid almost ₹1,68,000 crore of current dues in the last 5 months.
At present, only one distribution utility — JBVNL (Jharkhand Bijli Vitran Nigam) — is under regulation for non-payment of current dues. Outstanding dues of Discoms on trigger date have been reduced to ₹205 crore from ₹5,085 crore as on August 18, 2022, the Ministry pointed out.
“Based on the results achieved so far, it is expected that strict implementation of the LPS rules will bring back financial viability of the power sector in the country and would attract investment to ensure reliable 24x7 electricity to the consumers. These rules have not only ensured that the outstanding dues are liquidated, but have also ensured that the current dues are paid in time. It may be seen that the rule has played a vital role in ensuring the financial discipline in Discoms,” it noted.