Dues owed by distribution firms towards payment for power supply to the generating firms rose over 37% y-o-y to INR 129,386 Crore in Jul ’20. Distribution companies (Discoms) owed a sum of INR 94,666 Crore in Jul ’19, as per the data provided by PRAAPTI portal of power ministry.
The total amount recorded a marginal fall over the previous month, as it dropped 0.5% m-o-m from INR 130,101 Crore in Jun ’20. However, overdue amount having larger share in the overall sum, increased from INR 115,605 Crore in Jun ’20 to INR 116,683 Crore in Jul ’20.
It is pertinent to note that power producers give 60 days to Discoms for paying bills for the supply of electricity. After that, outstanding dues become overdue and generators charge penal interest on that in most cases.
During Jul ’20, bill of INR 14,633 Crore was raised against which sum of INR 9,266 Crore was paid by the Discoms.
Reeling under the pressure of COVID-19, Discoms have accumulated higher dues since the beginning of Apr ’20 than the monthly average assessed for FY ’20. Adding to the woes of the power producers, generation from conventional sources has fallen 12% y-o-y to 489.36 BU in the first 5 months of FY ’21.
In a relief measure taken to assist the power sector, the government announced INR 90,000 Crore liquidity infusion for Discoms under which these utilities would get loan at economical rates.
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