The Union power ministry is planning to introduce stringent norms for discoms, with a view to check their mounting outstanding dues, according to a reliable media report.
The media report quoting Union power ministry R.K. Singh said that the ministry was planning to introduce a system whereby discoms with unreasonably high outstanding dues to generation companies (gencos) will not be allowed to access power from other sources such as power exchanges or other gencos.
Singh, according to the media report, also highlighted the fact that some discoms have been “financing” irresponsible behaviour by delaying payment of gencos and by borrowing from banks and financial institutions.
According to official statistics, the total outstanding dues of discoms, as of November 30, 2021, stood at Rs.1,13,031 crore. Of this, nearly 87 per cent was overdue (outstanding for more than 60 days) while the remaining represented “current” dues.
Of the overdue amount of Rs.97,770 crore, as of November 30, 2021, more than half (52 per cent) was payable to independent power producers, while 21 per cent was due to renewable energy generators. Central PSU power generation companies had a share of around 25 per cent of this overdue amount.
Another media report quoting R.K. Singh expressing concern over the apprehension that no investor will enter the renewable energy sector if power bills are not cleared on time. As discussed above, discoms owed RE generators some Rs.20,000 crore, in the form of payments not cleared even beyond 60 days.
In both the media reports, R.K. Singh spoke to reports on the sidelines of the National Energy Conservation Day function, in New Delhi.
