Power distribution firms cut outstanding debt by Rs 24,680 Cr in 6 months

For the payment of EMI of Rs 24,680 crore, five states have taken a loan of Rs 16,812 crore from PFC (Power Finance Corporation) and REC Ltd and eight states have opted to make their own arrangement.

PTIUpdated: Wednesday, November 30, 2022, 03:40 PM IST
article-image

The Ministry of Power on Wednesday said outstanding dues of electricity distribution firms (discoms) towards gencos, transcos and traders have come down by Rs 24,680 crore to Rs 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,'' a power ministry statement said.

The total outstanding dues of states (discoms) which were at Rs 1,37,949 crore as on June 3, 2022 have been reduced by Rs 24,680 crore to Rs 1,13,269 crore with timely payment of just four EMIs (equated monthly installments), it stated.

For the payment of EMI of Rs 24,680 crore, five states have taken a loan of Rs 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 Rs 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 Rs 205 crore from Rs 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 24x7 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.

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Petrol, diesel prices, Jan 27: Check rates in Mumbai, Delhi, Chennai and other cities

Petrol, diesel prices, Jan 27: Check rates in Mumbai, Delhi, Chennai and other cities

Opening Bell: Indices open lower; Sensex falls 237 points, Nifty around 17800

Opening Bell: Indices open lower; Sensex falls 237 points, Nifty around 17800

Mumbai-based GTL named in FIR by CBI over Rs 4,700 cr bank fraud

Mumbai-based GTL named in FIR by CBI over Rs 4,700 cr bank fraud

Pakistani rupee crashes 9.6% to all-time low of 255.4 against US dollar after devaluation

Pakistani rupee crashes 9.6% to all-time low of 255.4 against US dollar after devaluation

Crisis-hit Pakistan turns to US for help with unlocking IMF loans

Crisis-hit Pakistan turns to US for help with unlocking IMF loans