The outstanding dues of distribution utilities from power producers have risen by more than 57 per cent to Rs 73,748 crore in July 2019 compared to the same month last year, showing stress in the sector. According to PRAA portal, distribution companies owed a total of Rs 46,779 crore to power generation companies in July 2018.
The portal was launched in May 2018 to bring transparency in power purchase transactions between generators and discoms (distribution companies). In July this year, total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at Rs 54,342 crore as against Rs 30,331 crore in the same month in 2018.
Power producers give 60 days time to discoms for paying bills for the supply of electricity. After that, the outstanding becomes overdue and generators charge penal interest on that in most of the cases. Read more
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