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National Solar Energy Federation of India (NSEFI) has urged the Centre to ensure urgent release of payments by PFC and REC under Atmanirbhar Bharat Abhiyan scheme to renewable energy developers having PPAs with Andhra Pradesh discoms.
In a letter addressed to RK Singh, Union Minister of State (I/C) Power, New and Renewable Energy, the Federation has brought to the notice of the Centre the problems of delayed payments faced by renewable energy companies.
Subrahmanyam Pulipaka, Chief Executive Officer, NSEFI, sought the relief under the the Government’s move to infuse liquidity of ₹90,000 crore through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to all States/UTs to assist discoms clear their liabilities as a part of the Atmanirbhar Bharat Abhiyan.
NSEFI stated Andhra Pradesh Government had requested PFC and REC to disburse an additional loan to the State under Tranche-I for repayment to renewable energy developers. However, this is pending for few months and RE developers are yet to receive payments since April 2020.
Earlier, following concerns about payments and Power Purchase Agreement (PPA) renegotiation move, the AP High Court in September 2019 has directed discoms to pay an interim tariff of ₹2.43/kWh to wind and ₹2.44/kWh to solar developers.
But, it is not enough to service debt and delayed payments are jeopardising international and also domestic investments.
“Non-payment of agreed tariff as per PPA and also not paying the interim tariff as directed by High Court has caused severe financial distress to our members and threatens the sustenance of the project operations, including payment of debts against the project, payment of salaries to its employees and other financial obligations as renewable companies are unable to service their debt obligations to lenders,” the NSEFI wrote.
The banking system is at the risk of suffering NPAs of ₹15,000-18,000 crore due to this delay, it said.
The electricity falls under “Essential Service” and the renewable companies are performing their obligations to generate power, continue to pay salaries to their employees and are committed to assist the citizens even during these troubling times, NSEFI said.
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