Distribution companies of state governments have started making payment in installments under the Late Payment Surcharge (LPS) scheme, according to Chairman, PTC Energy.
In a release, Chairman of PTC Energy Ltd (PEL), a wholly-owned subsidiary of PTC India Ltd, said that state-owned distribution companies of Andhra Pradesh, Madhya Pradesh and Karnataka, have started making payments in installments, under the LPS scheme.
These three states, with whom PEL has entered into power purchase agreements have availed LPS scheme introduced by the Central government. These states have started making payments in installments of outstanding amount, and in addition, regular bills of PEL are also being paid, PEL said.
Under the new scheme, discoms have been given the flexibility of paying their outstanding amount in up to 48 installments. A one-time relaxation has been given to discoms wherein the amount outstanding, which includes principal and late payment surcharge (LPS), on the date of notification of scheme, has been frozen without any further imposition of LPS.
The Chairman of PEL also informed that litigation relating to tariff in Andhra Pradesh, which was continuing for past three years, have been decided in favour of wind power generators in Andhra Pradesh and now AP has to make the payment at PPA specified tariff of Rs.4.84 per kwh.
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Chairman, PEL, was addressing shareholders at the company’s 14th Annual General Meeting, held on September 23, 2022, to take up the company’s audited results for the year ending March 31, 2022.
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