NEW DELHI: The power ministry is all set to introduce a new scheme that will allow discoms to pay off their dues towards gencos in 48-monthly installments. The ministry claims the scheme will save Rs 19,833 crore on account of late payment surcharge.
According to the data available on the PRAAPTI portal, discoms’ overdues (excluding disputed amounts and late payment surcharge (LPSC)) stood at Rs 1,00,018 crore till May 18, 2022. “The inability of discoms to pay dues impacts the entire value chain of the power sector. Considering this situation, the Ministry of Power is working on a scheme to mitigate the financial woes of the distribution companies (Discoms) that are unable to pay their dues,” said the ministry in a statement.
Under the scheme, the government is planning to give one-time relaxation to discoms wherein the amount outstanding (includes principal and late payment surcharges) on the date of notification of the scheme will be frozen without further imposition of LPSC. “The liquidation of outstanding dues in deferred manner without imposition of LPSC will give discoms time to shore up their finances.
At the same time, the generating firms will benefit from assured monthly payments, which otherwise were not forthcoming to them.” However, in case of delay in payment, the late payment surcharge will be payable on the entire outstanding dues, which otherwise was exempted, the ministry said.
Total outstanding dues owed by discoms to power producers rose by 17.3% year-on-year to Rs 1,23,244 crore in April 2022. Discoms in Uttar Pradesh, Telangana, Rajasthan, Karnataka, Madhya Pradesh, Maharashtra and Tamil Nadu owe the major portion of the dues to gencos.
Thus, the government believes the scheme is going to benefit states like Tamil Nadu and Maharashtra, which have large outstanding dues and will save over Rs 4,500 crore each. Uttar Pradesh will save nearly Rs 2,500 crore, while States like Andhra Pradesh, Jammu and Kashmir, Rajasthan and Telangana will save in the range of Rs 1,100 crore to Rs 1,700 crore.
Govt urges states for zero diesel use in agri by 2024
Power minister R K Singh on Wednesday urged the states to make efforts for zero diesel consumption in agriculture by 2024. The minister said energy transition is the only means of reducing carbon emissions and fulfilling our commitments made at international forums, therefore, the states and Union Territories have to work together on multiple tracks. He stressed that the role of state governments is significant for successful reduction in emission intensity by 45% by 2030 as compared to the 2005 level. The minister has asked the chief ministers of states, and Lt Governors of UTs to set up state-level steering committees for energy transition. “First track is the addition of renewables to the electricity.”