Stress in the power distribution sector is evident from the fact that the total outstanding amount payable by state government-owned distribution companies to power generators rose 47 per cent year-on-year in June 2020.
According to the PRAAPTI portal of the ministry of power, the total amount payable by discoms as of end-June 2020 stood at Rs.133,342 crore. This includes both dues that are outstanding and those that are overdue. Generators usually give a credit period of six months for payment, from the date of presenting the invoice. Any payment delayed beyond six months is considered “overdue” and generating companies are permitted to levy interest on such delayed payment.
| Table 1: Discoms Payment Performance | |||
| (Rs.crore) | |||
| June 2020 | June 2019 | % chg | |
| No. of overdue invoices | 17,118 | 11,382 | 50.4 |
| Overdue amount at month-start | 113,869 | 66,137 | 72.2 |
| Total amount billed to discoms | 14,332 | 18,719 | -23.4 |
| Amount paid by discoms against overdue (A) | 6,518 | 7,819 | -16.6 |
| Amount paid by discoms against outstanding (B) | 1,557 | 5,574 | -72.1 |
| Total paid by discom (A+B) | 8,075 | 13,393 | -39.7 |
| Overdue amount at month-end (C) | 119,916 | 72,362 | 65.7 |
| Outstanding amount at month-end (D) | 13,426 | 18,293 | -26.6 |
| Total amount due at month-end (C+D) | 133,342 | 90,655 | 47.1 |
| Source: PRAAPTI Portal | |||
PRAAPTI, an acronym for Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators, is an online service (www.praapti.in) launched by the Union power ministry in May 2018.
| Table 2: Summary of dues by discoms: end-June 2020 | ||||
| (Rs.crore) | ||||
| Overdue | Outstanding | Total | % share | |
| Central PSUs | 43,789 | 8,957 | 52,746 | 39.6 |
| State gencos | 24,261 | 1,116 | 25,377 | 19.0 |
| IPPs | 41,754 | 2,516 | 44,270 | 33.2 |
| RE Players | 10,111 | 837 | 10,948 | 8.2 |
| Total | 119,916 | 13,426 | 133,342 | 100.0 |
Here are highlights for the month of June 2020, the latest data released:
- Total outstanding by discoms stood at Rs.133,342 crore as of end-June 2020, up 47.1 per cent from Rs.90,655 crore as of end-June 2019.
- Of the total outstanding as of end-June 2020, nearly 90 per cent represented overdue amount. This level in June 2019 was lower at around 80 per cent.
- The total amount billed to discoms during June 2020 stood at Rs.14,332 crore. This was 23.4 per cent lower than in June 2019. The drop suggests lower electricity purchase in view of the COVID-19 lockdown.
- The total payment made by discoms to generators in June 2020 was Rs.8,075 crore, which was nearly 40 per cent lower than that in June 2019.
- The total outstanding payment (not overdue) by discoms as of end-June 2020 was Rs.13,426 crore. This was indeed 26.6 per cent lower than that in June 2019. This decline reflects the lower amount billed to discoms during the period lockdown months of April, May and June.
- Of the total amount payable by discoms (outstanding and overdue) of Rs.133,342 crore (as of end-June 2020) Central PSUs (including NTPC, NHPC, etc) accounted for a share of nearly 40 per cent. Private generators (independent power producers or IPPs) had a share of 33.2 per cent, followed by state gencos (19 per cent) and renewable energy producers (8.2 per cent).
Featured photograph showing aerial view of the state government-owned Obra-C thermal power plant in Uttar Pradesh is for illustration only.