PremiumFive states have taken a loan of ₹16,812 crore from Power Finance Corporation and Rural Electrification Corporation and eight states have opted to make their own arrangement
New Delhi: The Ministry of Power on Wednesday said the total outstanding dues of electricity distribution firms towards generation and transmission companies and traders have come down by ₹24,680 crore to ₹1,13,269 crore in the last 5 months.
This happened due to the timely payment of just four EMIs, the ministry said. Five states have taken a loan of ₹16,812 crore from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) and eight states have opted to make their own arrangement, it said.
‘’With the implementation of Electricity (LPS and Related Matters) Rules, 2022, remarkable improvement has been seen in recovery of outstanding dues of Suppliers including Generating Companies, Transmission Companies and Traders,‘’ a power ministry statement said.
Distribution companies are also paying their current dues in time to avoid regulations under the rule.
The statement read, “Distribution companies are also paying their current dues in time to avoid regulations under the rule. Distribution companies have paid almost ₹1,68,000 crore of current dues in the last five months."
Presently, only one distribution utility i.e. Jharkhand Bijli Vitran Nigam Limited (JBVNL) is under regulation for non-payment of current dues.
Outstanding dues of distribution companies on trigger date have been reduced to ₹205 crore from ₹5,085 crore as on 18 August, 2022, it said.
Based on the results achieved so far, it is expected that strict implementation of the Late Payment Surcharge (LPS) Rules will bring back financial viability of the power sector in the country and would attract investment to ensure reliable 24x7 electricity to consumers, ministry said.
This Rule has not only ensured that the outstanding dues are liquidated but has also ensured that current dues are paid in time. It may be seen that the Rule has played a vital role in ensuring the financial discipline in Discoms, it added.