Business

Delays in distribution units of power generating companies increased by 35 percent in November

The arrears of power generating companies have increased by more than 35 per cent year-on-year to Rs 1,20,621 crore. Debt reflects the pressure in the growth region. According to the Purchase Portal (Power Purchase Analysis by Analyzing Power Purchase and Transparency in Payment Confirmation), the distribution companies of the producer companies had owed Rs 1,04,426 crore in November 2016.

The portal was launched to bring transparency in power purchases between generators and distribution companies

The portal was launched in 2018 by the Ministry of Power to bring transparency in power procurement between generators and distribution companies. The total previous arrears stood at Rs 1,29,868 crore in November 2020, as against Rs 93,215 crore in the same month a year ago. The previous arrears were not paid even 45 days after the delay. According to the latest information available on the portal, the total arrears in November also increased on a monthly basis. The total arrears in October 2020 were Rs 1,39,057 crore. The same amount was Rs 1,26,444 crore in the previous month.

Payment protection system is applicable from August 2019

Power generating companies give 45 days to pay the bill for electricity supply. Thereafter, the arrears become pre-arrears on the basis of which the manufacturing companies charge interest as a penalty. To provide relief to power generating companies, the center has implemented security measures provided from August 1, 2019. Under this arrangement, the distribution companies have to accept a letter of credit for the supply of electricity.

Distribution companies were given some relief to pay off the lockdown

The central government has given some relief to the distribution companies considering the Kovid-19 epidemic and its ‘lockdown’. Also, in this context, exemptions were also taken from the collection of fines for late payment. The government announced in May that it would disburse Rs 90,000 crore in cash to distribution companies. Under this, loans are being given to companies from Public Sector Power Finance Corporation and REC Limited. This step was taken with the intention of improving the debt collection of productive companies. Later the cash receipts amounted to 1.2 million.

These states and enterprises are outstanding

According to the data, Rajasthan, Maharashtra, Uttar Pradesh, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka, Jharkhand, Haryana and Tamil Nadu have the largest share of arrears. NTPC alone owes Rs 19,215.97 crore to central public sector undertakings. In addition, Nayalasi India Rs 6,932.06 crore, Domodar Valley Corporation Rs 236.03 crore, NHPC Rs 3,223.6 crore and THDC India Rs 2,08.06 crore.

Among the private power generating companies, Adani Power had the highest arrears of Rs 20,242.74 crore. After that Bajaj Group’s company Lalitpur Power Generation Company Limited. 4,3733.23 crore, GMR Rs. 2,195.12 crore and SEMB (Sambacarp) Rs. 2,118.45 crore. Non-conventional power generating companies, including solar and wind power, owed Rs 11,862.07 crore in November.

.

Show More

Related Articles

Leave a Reply

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker