The total outstanding dues payable by state-owned distribution companies to power generators grew 16.8 per cent year-on-year, to reach Rs.102,684 crore on February 28, 2021.
Data relating to February 2021 was released on the PRAAPTI portal recently. Here are some highlights:
The total “overdue” amount by discoms to power generators grew by 23.9 per cent to reach Rs.91549 crore on February 28, 2021 from Rs.73,867 crore on February 29, 2020. Any amount that is due is deemed “overdue” if it remains unpaid for over 60 days, which is the grace period.
- The amount billed to discoms in February 2021 was Rs.13,693 crore. Interestingly, this was 14.2 per cent lower than the Rs.15,953 crore billed in February 2020. The fall in amount billed by discoms can be explained by a combination of reasons. Power discoms are buying electricity from power exchanges when prevailing market rates are lower than the PPA-bound tariffs. Demand side management (DSM) practices are leading to lower peak demand.
- There was significant improvement in the total payment made by discoms to power generators. In February 2021, discoms cleared total dues of Rs.14,232 crore to power generators, up 15.3 per cent from February 2020.
- In February 2021, around 86 per cent of the total payment made by discoms to generators was towards clearing overdue amounts. In February 2020, this metric was 75.3 per cent.
- It appears that discoms are doing well on clearing the outstanding amounts, which is to say, discoms, in recent months, have been clearing their dues within the grace period. The total outstanding amount as of February 28, 2021 stood at Rs.11135 crore—nearly 21 per cent lower than the Rs.14021 crore as of February 29, 2020.
PFC/REC scheme
Under the Central government’s PFC/REC Aatmanirbhar Scheme aimed at alleviating financial stress of discoms, a total of Rs.75,000 crore was disbursed in FY21. This is expected to reduce the financial stress of state government-owned power distribution utilities. (Read more).
(Featured chart sourced from www.praapti.in)
