The Ministry of Power on Wednesday said outstanding dues of electricity distribution firms (discoms) towards gencos, transcos and traders had come down by ₹24,680 crore to ₹1,13,269 crore in the last six months.
“With the implementation of Electricity (LPS and Related Matters) Rules, 2022, remarkable improvement has been seen in recovery of outstanding dues of suppliers including generating companies, transmission companies and traders,” the ministry said in a statement.
The total outstanding dues of states (discoms), which were at ₹1,37,949 crore as on June 3, 2022, have been reduced by ₹24,680 crore to ₹1,13,269 crore with timely payment of just four EMIs (equated monthly installments), it stated.
For the payment of EMI of ₹24,680 crore, five states have taken a loan of ₹16,812 crore from PFC (power finance corporation) and REC Ltd., and eight states have opted to make their own arrangement, it said.
Distribution companies are also paying their current dues in time to avoid regulations under the rule.
Distribution companies have paid almost ₹1,68,000 crore of current dues in the last five months.
Presently, only one distribution utility, JBVNL, is under the regulation for non-payment of current dues.
Outstanding dues of distribution companies on trigger date have been reduced to ₹205 crore from ₹5,085 crore as on August 18, 2022, it said.
Based on the results achieved so far, it is expected that strict implementation of the Late Payment Surcharge (LPS) Rules will bring back financial viability of the power sector in the country and would attract investment to ensure reliable 24×7 electricity to consumers, it added.
This rule has not only ensured that the outstanding dues are liquidated, but has also ensured that current dues are paid in time. It may be seen that the Rule has played a vital role in ensuring the financial discipline in Discoms, it said.
