FEATURE
Discom dues touch `1.2 lakh crore Rajasthan, Tamil Nadu, Uttar Pradesh, Karnataka, Maharashtra suffer most Coal Insights Bureau
T
he finances of Discoms have got further constrained with their outstanding dues to power generators ballooning to `1.19 lakh crore as on August 31, a 13 percent increase over a 7 months period. Rajasthan, TN, UP, Karnataka and Maharashtra account for about 65 percent of the outstanding amount. The ongoing current Covid-19 induced lockdown has extended payment cycles as Discoms are unable to generate all bills while
collections drop as people are restricted at homes. Overdue to NTPC rose significantly during April-June, led by breather given by Central government to Discoms for paying their dues in view of Covid-19 induced lockdown. The power ministry has allowed for Discoms to get relief from payable during lockdown period in the form of special rebate from NTPC and PGCIL. However, with a stimulus package, Discom dues are expected to reduce in near future.
“Recent relief package of `90,000 crore to Discoms is expected to diffuse this situation,” analysts said. Collection efficiency of discoms improved to 100 percent as customers started clearing old dues. As a result, discoms’ financial situation was averted from deteriorating further, which was also aided by the government’s Atmanirbhar scheme. Sector reform measures
The government has now enhanced the concessional loan limit under the Atmanirbhar scheme to `1,25,000 crore enhancing the initial `90,000 crore concessional loan by the Power Finance Corp and Rural Electrification Corp under the Atmanirbhar scheme, which will bring in the muchneeded liquidity to the cash-starved sector to cover the outstanding dues as of June. So far, loans worth 90,800 crore have been sanctioned and `2,900 crore in loan disbursed to nine states. The power ministry is also working on a series of reforms, including the implementation of the Direct Benefit
Payments by Discoms
August 2019
August 2020
Source: PRAAPTI, JM Financial
Coal Insights, October 2020
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