The distribution companies (discoms) owed a total of Rs 1,10,660 crore to power generation firms in December 2019, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).

The portal was launched in May 2018 to bring in transparency in power purchase transactions between the generators and discoms.

In December 2020, the total overdue amount, which was not cleared even after 45 days of grace period offered by generators, stood at Rs 1,27,498 crore as against Rs 97,835 crore in the year-ago period.

According to the latest data on the portal, total outstanding dues in December dipped on a month-on-month basis. In November 2020, the total outstanding dues of discoms stood at Rs 1,40,741 crore.

The overdue amount in December 2020 has decreased from Rs 1,27,539 crore in November 2020. Power producers give 45 days to discoms to pay bills for electricity supply. After that, outstanding dues become overdue and generators charge penal interest on that in most cases.

To give relief to power generation companies, the Centre enforced a payment security mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit for getting power supply. In May, the government announced Rs 90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from Power Finance Corporation (PFC) and REC Ltd. This was a government initiative to help gencos to remain afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore.