NEW DELHI: Total outstanding dues of electricity distribution companies (Discoms) were reduced to `1,08,092 crore after implementation of Electricity (LPS and Related Matters) Rules, 2022, said power minister R K Singh on Tuesday.
Singh, in a written reply to parliament, said the strict implementation of the LPS Rules will bring back financial viability of the power sector in the country. It would also attract investment to ensure reliable 24x7 electricity to the consumers.
“With the implementation of Electricity (LPS and Related Matters) Rules, 2022, a remarkable improvement has been seen in recovery of outstanding dues. The total outstanding dues of the states, which were at Rs 1,37,949 crore, as of June 3, 2022, have been reduced by Rs 29,857 crore to Rs 1,08,092 crore, with timely payment of just five monthly instalments,” said the minister.
In a bid to strengthen the regulatory provisions for recovery of outstanding dues of GENCOs, the ministry notified the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022” (LPS Rules) in June 2022. The purpose of these rules is to provide a mechanism for settlement of outstanding dues of generating companies, inter-state transmission licensees and electricity trading licensees.
He said the distribution companies are also paying their current dues in time to avoid regulations under the rule. These distribution companies have paid nearly Rs 1,68,000 crore of current dues in last five months. “This Rule has not only ensured that the outstanding dues are liquidated but has also ensured that the current dues are paid in time,” said the minister.