Dues owed by distribution firms towards payment for power supply to the generating firms increased 30% y-o-y to INR 138,402 Crore in Oct ’20. Distribution companies (Discoms) owed a sum of INR 106,740 Crore in Oct ’19, as per the data provided by PRAAPTI portal of power ministry.
The total amount also recorded growth for the third successive month, as it grew 1% m-o-m from INR 136,774 Crore in Sep ’20.
Overdue amount having larger share in the overall sum extended its growth on the monthly basis as it increased from INR 124,859 Crore in Sep ’20 to INR 125,950 Crore in Oct ’20, while remaining amount on account of outstanding payments was recorded at INR 12,452 Crore during the month.
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 Oct ’20, bill of INR 15,393 Crore was raised against which sum of INR 13,813 Crore was paid by the Discoms.
Among the power generators, discoms owe the highest overdue of INR 28,206 Crore to Rajasthan state utility-RVUN followed by INR 20,242 Crore to Adani Power and INR 19,750 Crore to NTPC Ltd. The overdue of non-conventional energy producers like solar and wind, stood at INR 11,096 Crore in October.
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