Dues & disputes: IPPs seek larger loan facility for discoms

With state-run electricity distribution companies’ over-dues to private power companies rising 8% on year to Rs 36,018 crore at April end despite the Rs 1.25-lakh-crore PFC-REC loan facility at the discoms’ disposal, even the latest package to bail out the power sector is threatening to come a cropper.

Independent power producers (IPPs) have demanded an expansion of the loan facility, even as a large segment of their receivables are disputed by the discoms.

The liquidity infusion scheme originally had a size of Rs 90,000 crore and it was meant to to cover the dues till March 2020; it was later expanded include overdue bills unpaid by discoms till the end of June 2020.

“Considering the unfolding burden on the states’ finances at present, the extension of time coverage of liquidity window to cover dues till March 31, 2021, will provide a fallback option to needy states to provide cash liquidity in the system