The outstanding amount of the discoms (power distribution companies) expires after 45 days of increasing the invoice for the supply of electricity by gencos.
The outstanding dues for electricity distribution companies amounted to Rs one lakh crore at the end of February this year, parliament was informed on Tuesday.
“According to data provided by the energy sector that companies provided on the PRAAPTI portal at the end of February 2022, a total amount of Rs 1,00,931 crores is owed from the DISCOMs,” said Energy Minister RK Singh in a written response to the Rajya Sabha.
According to the reply, that amount overdue does not include the disputed amount.
The outstanding amount of the discoms (power distribution companies) expires after 45 days of increasing the invoice for the supply of electricity by gencos.
The minister explained that the government has taken several interventions to improve the financial and operational efficiency of discos related to reform measures, including Liquidity Infusion Scheme (LIS); Additional loans of 0.5 percent of the GSDP to states related to energy sector reforms; adoption of additional prudential lending standards by Power Finance Corporation (PFC) and REC based on utility performance; and renewed Distribution Sector Scheme (RDSS).
Furthermore, the government had also issued an order dated June 28, 2019, enforcing the opening and enforcement of an adequate letter of credit (LC) as a 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 transmit power only after it is declared by GENCO and confirms the opening of LC.
These reform measures will improve the financial health of discos, which will improve the liquidity situation, leading to a reduction in outstanding power generating company (GENCOS) rights, Singh said.
The minister also informed the House of Representatives that according to forecasts by the Central Electricity Authority, the share of coal-based thermal energy generation would be about 32 percent in the energy mix by 2030, compared to the current share of 52 percent.
In another reply, Singh said 36.79 crore of LED lamps were distributed until March 16, 2022, resulting in energy savings of 47,784 million units of electricity per year, a peak demand reduction of 9,566 MW and 38.70 million tons of CO2 emissions reduction per year. year.
The EESL has installed more than 1.23 crore (as of March 16, 2022) LED street lighting in ULBs (Urban Local Bodies) and gram panchayats across India, resulting in energy savings of 8,516.7 million units of electricity per year, a reduction in peak demand of 1,419.45 MW and 5.87 million tons of CO2 emissions reduction per year, he added.
This post Discoms owes Rs 1 lakh cr to power generating companies until February: Energy Minister was original published at “https://www.financialexpress.com/industry/discoms-owe-rs-1-lakh-cr-to-power-generating-firms-till-feb-power-minister/2468306/”
