Latest News | Discoms Owe Rs 1 Lakh Cr to Power Generating Firms Till Feb: Power Min

New Delhi, Mar 22 (PTI) Power distribution utilities outstanding dues stood at Rs one lakh crore at the end of February this year, Parliament was informed on Tuesday.

"As per data provided by the power sector Generating companies, on the PRAAPTI Portal, at the end of February 2022, a total amount of Rs 1,00,931 crores is due from the DISCOMs," Power Minister RK Singh said in a written reply to the Rajya Sabha.

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According to the reply, this overdue amount does not include the disputed amount.

The outstanding amount of the discoms (power distribution companies) becomes overdue after 45 days of raising the bill for supply of power by gencos.

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The minister explained that the government has made several interventions to improve financial and operational efficiencies of discoms linked to reform measures, including Liquidity Infusion Scheme (LIS); Additional Borrowing of 0.5 per cent of GSDP to states linked to power sector reforms; introducing additional prudential norms for lending by Power Finance Corporation (PFC) and REC based on the performance of utilities; and Revamped Distribution Sector Scheme (RDSS).

Further, the government had also issued an order dated June 28, 2019, enforcing opening and maintaining of adequate Letter of Credit (LC) as payment security mechanism under power purchase agreement (PPA) by Distribution Licensees.

The order mandates NLDC (National Load Dispatch Centre) and RLDC (regional load dispatch centres) to dispatch power only after it is intimated by GENCO and discom confirming the opening of LC.

These reform measures will improve the financial health of discoms, which will improve the liquidity situation leading to a reduction in outstanding dues to power generating companies (GENCOS), Singh stated.

The minister also informed the House that as per projections of the Central Electricity Authority, the share of coal-based thermal power generation capacity in the year 2030 would be around 32 per cent in the energy mix as against the present share of 52 per cent.

In another reply, Singh said that 36.79 crore LED bulbs were distributed till March 16, 2022, which resulted in energy saving of 47,784 million units of electricity per annum, peak demand reduction of 9,566 MW and 38.70 million tonnes of CO2 emission reduction annually.

The EESL has installed over 1.23 crore (as of March 16, 2022) LED street lights in ULBs (urban local bodies) and gram panchayats across India, which has resulted in energy saving of 8,516.7 million units of electricity per annum, peak demand reduction of 1,419.45 MW and 5.87 million tonnes of CO2 emission reduction annually, he added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)