Economy

UP, TN, Telangana owe over ₹43,000 crore to CPSU Gencos

Our Bureau New Delhi | Updated on June 26, 2020 Published on June 26, 2020

The power distribution companies (Discoms) of Uttar Pradesh, Tamil Nadu and Telangana alone owe nearly half the total pending dues to Central PSU (CPSU) power generation companies (Gencos).

According to data compiled by the Ministry of Power, these three States alone owed ₹43,048 crore of the ₹94,127 crore in total pending dues to CPSU Gencos as on March 31, 2020. Uttar Pradesh owed the highest, at ₹17,825 crore, while Tamil Nadu came second at ₹17,039 crore and Telangana, at ₹8,184 crore.

Other States with high pendency are Maharashtra (₹7,386 crore), Jammu and Kashmir and Ladakh (₹6,834 crore), Karnataka (₹6,775 crore) and Andhra Pradesh (₹6,673 crore).

These accumulated dues pertain to pre-lockdown periods. But the Discoms found it hard to recover payments from consumers as the lockdowns curtailed civilian movement.

To help Discoms make these payments, the Centre is offering ₹90,000 crore in liquidity support under the Aatmanirbhar package. This support will be in the form of soft loans by Power Finance Corporation (PFC) and its subsidiary, REC India. But, the onus of paying back these loans will lie on the respective State governments if the Discoms default.

The loans from PFC and REC will not come as a grant from the Centre. They will be borrowing this amount from the market under the usual dispensation.

The Centre has also decided to defer fixed charge on electricity to be paid by the Discoms to Gencos for the lockdown periods — this will be repaid in three equal instalments in subsequent months.

It is estimated that consumers will save up to 25 per cent on their monthly electricity bills because of these measures.

Published on June 26, 2020
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