Power producers’ total outstanding dues owed by distribution companies rose around 37 per cent to Rs 69,558 crore in September 2019 over the same month last year, reflecting stress in the sector.
Distribution companies owed a total of Rs 50,583 crore to power generation companies in September 2018, according to web portal and app namely PRAA (Payment Ratification and Analysis in Power procurement for Bringing Transparency in Invoicing of generators).
The portal was launched in May 2018 to bring a transparency in power purchase transactions between generators and discoms (distribution companies). In September this year, total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at Rs 52,408 crore as against Rs 34,658 crore in the same month last year.
Power producers give 60 days’ time 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. Read More
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