Discoms’ excellent dues to gencos fall 15.2 per cent to Rs 82,305 crore in May

Total excellent dues owed by electrical energy distribution utilities or discoms to energy producers fell 15.25 per cent to Rs 82,305 crore in May 2021 from a 12 months in the past.
Distribution firms (discoms) owed a complete Rs 97,111 crore to energy era corporations in May 2020, based on portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of turbines).
The excellent dues of discoms in direction of electrical energy producers have been rising year-on-year in addition to month-on-month for years displaying perennial stress within the energy sector until February this 12 months. It has began petering out from March 2021.
Total dues in May elevated sequentially in comparison with Rs 77,203 crore in April this 12 months. The PRAAPTI portal was launched in May 2018 to herald transparency in energy buy transactions between turbines and discoms.
In May 2021, the entire overdue quantity, which was not cleared even after 45 days of grace interval provided by turbines, stood at Rs 68,762 crore as towards Rs 84,691 crore in the identical month a 12 months in the past.
The overdue quantity stood at Rs 63,050 crore in April this 12 months.

Power producers give 45 days to discoms to pay payments for electrical energy provide. After that, excellent dues grow to be overdue and turbines cost penal curiosity on that typically.
To give aid to energy era firms (gencos), the Centre enforced a fee safety mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit score for getting energy provide.

The Centre had additionally given some breathers to discoms for paying dues to gencos in view of the COVID-19-induced lockdown. The authorities had additionally waived penal costs for late fee of dues.
In May, the federal government introduced Rs 90,000 crore liquidity infusion for discoms beneath which these utilities would get loans at economical charges from Power Finance Corporation (PFC) and REC Ltd. This was a authorities initiative to assist gencos stay afloat.