Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) had pending dues to power producers of about ₹15,800 crore at the end of April 2020, up 63% from nearly ₹9,700 crore in April 2019, according to data available on Union Power Ministry’s PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) portal.
The PRAAPTI app and portal was developed to bring transparency in power purchase transactions between generators and discoms and captures the invoicing and payment data for various long-term power purchase agreements from the power generators.
As per the data, Tangedco had dues with 41 generating companies including public sector NLC India and NTPC, private producers like DP Power, Dhariwal Infrastructure among others.
State distribution companies in Rajasthan, Tamil Nadu, Uttar Pradesh, Maharashtra, Karnataka, Telangana and Jharkhand – accounted for 81% of the total overdue of ₹1,05,000 crore, as of April 2020.
Tangedco’s pending dues increased 9% from about ₹14,500 crore in March 2020 and it accounted for 15% for overall dues by discoms, after Rajashtan which accounted for 30%.
“Discoms’ ailing financial health was exacerbated during the lockdown, leading to a steep fall in power offtake across the commercial and industrial segment. Also collection efficiency declined to 20% in April 2020 and was 35-40% in May 2020,” research firm Emkay Global said in a note.
“With abysmal financial health of discoms, the entire chain is in deep stress. The government’s plan to provide financing of ₹90,000 crore under Atmanirbhar scheme to the discoms should ease the pain and help them repay most of the outstanding dues to the power generating companies,” it said.
However, Emkay said the implementation of the package had not been entirely smooth and negotiations had led to a delay in execution as the package comes with certain stipulations such as State governments meeting unconditional and irrevocable guarantees.