Finmin clarification: ‘We haven’t delayed payments of Rs 7 lakh crore’

The power ministry proactively conceptualised Rs 90,000 cr worth of liquidity infusion scheme to ease the liquidity position of the above -mentioned generators in two equal tranches.

In response to the news report ‘Forget the stimulus, just clear your dues’, written by Prasanta Sahu which appeared in the edition dated September 8, the finance ministry has responded with the following:

169 arbitration cases involving claims of contractors of Rs 74,227 crore as on Dec 2019
Comments: Out of Rs 74,227 crore, majority of the claims (Rs 52,945 crore) pertain to 4 contractors, who are not participating now in the highways sector.

The claims are highly exaggerated. A majority of claims are usually settled at 20-25% of claimed amounts. NHAI has launched a drive of conciliations through Conciliation Committees of Independent Experts (CCIEs).

A total of 47 cases involving claims of Rs 14,248 crore have been settled for Rs 4,018 crore.

NHAI has been following up with all contractors to come for conciliations for expeditious settlement of their claims and get their payments released immediately.

NHAI-owed concessionaires, as on February 2020, around Rs 25,900 crore – Rs 5,400 crore for annuity obligations, Rs 19,300 crore of grant for hybrid annuity model projects and Rs 1,200 crore of grant/viability grant funding towards BOT (Toll) projects.

Comments: No other payments are overdue other than the disputed arbitration amounts. The annuities under the Hybrid Annuity Models (HAM) and BOT Viability gap Funding (VGF) are paid in time. (Source: Ministry of Road Transport & Highways)

As on March 31 this year, the Centre also owed about Rs 27,000 crore to fuel retailers towards expenditure on kerosene and cooking gas subsidy.

Comments: The government has provided in the current Budget the entire pending dues as projected by MoPNG. An amount of Rs 40,914 crore has been provided for fuel subsidy. Out of BE amount of Rs 40,914 crore, approx 50% (Rs 19,659 crore) has already been released in first half of the year. (MoPNG)

As on March 31, 2020, state discoms had owed Rs 91,860 crore to power generating companies; the dues increased to Rs 1.17 lakh crore as on July 31. Similarly, discoms haven’t paid Rs 6,145 crore to PowerGrid Corporation, the transmission utility.

Comments: State distribution utilities dues to CPSE generation companies/ Transmission companies, Independent Power Producers (IPPs) or Renewable Energy (RE) generator as on March 31 were about Rs 94,000 crore, including about Rs 22,000 crore of IPPs and Rs 12,000 crore of RE generators. The power ministry proactively conceptualised Rs 90,000 cr worth of liquidity infusion scheme to ease the liquidity position of the above -mentioned generators in two equal tranches. Under the scheme, discoms have been released loan of about Rs 24,000 crore. Some states required relaxation of the UDAY limit to avail the loan, which was recently approved by the Union Cabinet. With this, the target of release of loans of the first tranche of Rs 45,000 crore shall be met within a fortnight. (Source: Ministry of Power)