State-run electricity distribution companies’ (discoms) dues to power producers stood at Rs 38,023 crore at the end of 2018-19, up 59.8% from a year earlier and 65% of these were “over-dues” with payment default of 60 days or more. The dues include those to independent power producers (about 46% of the total) and state-run utilities like NTPC, DVC and NHPC.
The steep rise in dues comes at a time when generation units with combined capacity of 40 gigawatts (GW) are stressed and the sector is still grappling with the fall-out of several years of muted demand growth.
To make matter worse, the private power producers are still waiting for payment of another Rs 6,865 crore from discoms as costs pass-through under the ‘change in law’ provision although these were approved by the regulators. Read More
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