The Ministry of Power (MoP) has constituted a new committee to study and submit its recommendations into the issue of delayed payments by distribution companies (DISCOMS) to power generating companies (GENCOs) and Independent Power Producers (lPPs).
The terms of reference for the committee to deliberate has been set by the government as follows-
- Study the working capital cycles of DISCOMs and GENCOs with respect to power procurement for all competitively bid and regulated PPAs, and identify gaps that may be contributing to the GENCOs’ stress
- Study the frameworks of the rules and regulations in regard to payment mechanisms and transaction structures across the power sector value chain currently
- To explore possibilities and suggest a mechanism for prepaid system of transactions from DISCOMs to generators for power purchase Read More