Discoms’ dues down by a 3rd to ₹93,000 cr in lower than a yr of imposing Late Fee Surcharge Rule

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Excessive pressure energy traces coming to the NCR in New Delhi.
| Photograph Credit score: Sushil Kumar Verma

The overall excellent dues of electrical energy distribution utilities (discoms) has diminished by a 3rd to round ₹93,000 crore in Might, in lower than yr of implementing the Late Fee Surcharge (LPS) Guidelines in June 2022.

The burgeoning dues of discoms towards energy technology (gencos) primarily and transmission (trancos) companies have been affecting all the worth chain of the sector until final yr.

In accordance with trade information, in June final yr, discoms’ dues had been at ₹1.39 lakh crore on the time of the launch of the Late Fee Surcharge (LPS) scheme.

The overall excellent dues now stand at round ₹93,000 crore as per the portal PRAAPTI (Fee Ratification And Evaluation in Energy procurement for bringing Transparency in Invoicing of turbines).

The PRAAPTI portal was launched in Might 2018, to deliver transparency in energy buy transactions between turbines and discoms.

Consultants consider the strict implementation of the Late Fee Surcharge (LPS) Guidelines could make the facility sector extra viable.

The Rule ensures that the excellent discom dues are paid nicely in time. Apart from, it has additionally ensured the fee of present dues in time. The scheme has performed a key function to deliver monetary self-discipline amongst discoms.

The non-payment of present dues by discoms, one month after the due date of fee or two and half months after the presentation of energy invoice, whichever is later, shall entice regulation (energy provide reduce) of energy beneath the the Late Fee Surcharge Guidelines, 2022.

Other than this the facility ministry had additionally supplied for robust fee safety administration and made it obligatory for discoms to open credit score letters or make fee of energy provide nicely in time to make sure monetary self-discipline.

Through the first wave of the pandemic, in Might 2020, the federal government introduced a ₹90,000 crore liquidity infusion for discoms beneath which government-owned Energy Finance Company (PFC) and REC Ltd had been to provide loans at economical charges as a way to allow gencos afloat from the influence of the outbreak.

Later, the infusion package deal was raised to ₹1.2 lakh crore and additional to ₹1.35 lakh crore.

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