Discom dues on power producers increased 63 percent to Rs 1.23 lakh crore

Discom dues on power producers increased 63 percent to Rs 1.23 lakh crore

New Delhi: 28 June (June ) Power producers' dues on electricity distribution companies (discoms) rose 63 per cent to Rs 1.23 lakh crore in April 2020 over the same month last year, reflecting problems in the sector.
According to the portal 'Prapati', designed for transparency in the electricity business, discoms owed Rs 75,642 crore to electricity producers in April 2019.

The portal was launched in May 2018 to bring transparency in power purchase transactions between power producers and discoms.

According to the receipts portal, the total outstanding dues, which were not repaid even after a 60-day grace period, increased to Rs 1,08,487 crore in April 2020. This figure was Rs 58,200 crore in the same period last year.
According to the data, discoms in Rajasthan, Uttar Pradesh, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu have the highest dues.

The Center implemented a payment protection mechanism from August 1, 2019 to provide relief to power generation companies (GenCom). Under this, DISCOMs need to open a letter of credit to get electricity supply.

Last month, the government announced an assistance of Rs 90,000 crore for discoms, under which they will be given loans at affordable rates from Power Finance Corporation and REC Limited.