The outstanding dues owed by distribution utilities to power producers rose around 37 percent to Rs 69,558 crore in September 2019 as compared to the same month last year, reflecting stress in the sector. According to web portal and app namely PRAAPTI (Payment Ratification and Analysis in Power procurement for Bringing Transparency in Invoicing of generators), distribution companies (discoms) owed a total of Rs 50,583 crore to power generation companies in September 2018.
In September this year, total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at Rs 52,408 crore as against Rs 34,658 crore in the same month in 2018. Power producers give 60 days' time to discoms for paying bills for the supply of electricity. After that, outstanding dues become overdue and generators charge penal interest on that in most cases. In order to give a relief to power generation companies, the government has enforced a payment security mechanism from August 1. Under this mechanism, discoms are required to open letters of credit for getting power supply.
Data on the portal indicates that outstanding as well as overdue amount have decreased over the preceding month. In August 2019, total outstanding on discoms was Rs 80,087 crore, while the total overdue amount was Rs 60,935 crore. The August 2019 figures of dues and overdues have been revised upwards from Rs 78,020 crore and Rs 59,532 crore provisional numbers released last month on the portal.
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