State-run electricity distribution companies’ (discoms) overdues to power producers stood at Rs 78,379 crore in March 2021, down 3.4% from a year earlier, showing a reversal of discoms' growing outstandings. Outstanding dues of discoms towards electricity producers have been increasing year-on-year as well as month-on-month for years showing perennial stress in the power sector till February this year.
According to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators), discoms owed total Rs 81,116 crore to power generation firms in March 2020. The dues in March also declined from Rs 98,673 crore in February and Rs 99,023 crore in January this year.
In March 2021, the total overdue amount, which was not cleared even after 45 days of grace period offered by generators, stood at Rs 67,417 crore as against Rs 68,587 crore in the same month a year ago. The overdue amount stood at Rs 84,478 crore in February and Rs 85,490 crore in January this year. 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.