Dues owed by distribution firms towards payment for power supply to the generating firms increased 40% y-o-y to INR 134,310 Crore in Aug ’20. Distribution companies (Discoms) owed a sum of INR 96,101 Crore in Aug ’19, as per the data provided by PRAAPTI portal of power ministry.
The total amount also recorded a marginal rise over the previous month, as it grew 2% m-o-m from INR 132,303 Crore in Jul ’20.
Overdue amount having larger share in the overall sum extended its growth on the monthly basis as it increased from INR 119,280 Crore in Jul ’20 to INR 121,467 Crore in Aug ’20, while remaining amount on account of outstanding payments was reduced to INR 12,843 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 Aug ’20, bill of INR 15,501 Crore was raised against which sum of INR 13,559 Crore was paid by the Discoms.
Among the power generators, discoms owe the highest overdue of INR 26,808 Crore to Rajasthan state utility-RVUN followed by INR 20,122 Core to Adani Power and INR 19,419 Crore to NTPC Ltd. The overdue of non-conventional energy producers like solar and wind, stood at INR 10,299.39 crore in August.
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