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States' dues to gencos halved to Rs 61,025 cr, says Power Minister

The total outstanding dues of states to power generating companies (gencos) have reduced by almost 50 per cent to Rs 61,025 crore, Parliament was informed on Thursday.

RK Singh

Power Minister R K Singh

Press Trust of India New Delhi

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The total outstanding dues of states to power generating companies (gencos) have reduced by almost 50 per cent to Rs 61,025 crore, Parliament was informed on Thursday.
There has been significant improvement in the realisation of dues of power generating companies post implementation of Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, promulgated on June 3, 2022, Union Minister for Power, New and Renewable Energy RK Singh informed the Lok Sabha.
"The total outstanding dues of states towards generating companies reported on PRAAPTI Portal, which were at Rs 1,20,540 crore as on 03.06.2022, have been reduced to Rs 61,025 crore as on 24.07.2023 with the timely payment of twelve (12) equated monthly instalments (EMIs)," the minister said.
Distribution companies are also paying their current dues in time to avoid regulations under the rule. However, some state gencos have sought working capital assistance from PFC and REC for procurement of coal pending the realisation of their dues, he said.
Various state utilities are approaching REC to sanction the loans. REC has provided loan assistance to various utilities for the procurement of coal.
Also, PFC Ltd has a policy in place which prescribes sanction of short-term loans to state power plants requiring working capital to buy coal, subject to compliance with additional prudential norms prescribed by the Ministry of Power.
On coal supplies, Singh said that to address the issues of coal supplies to the power sector, an Inter-Ministerial Sub Group meet regularly to take various operational decisions to enhance the supply of coal to thermal power plants as well as for meeting any contingent situations relating to power sector, including to alleviate critical coal stock position in power plants.
The Inter-Ministerial Sub Group comprise representatives from the Ministries of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL).
Besides, an inter-ministerial Secretary-level meeting is held regularly to monitor coal stocks.
The government has issued revised coal stocking norms, which mandate the power plants to maintain sufficient stock at all times to meet any contingent situation, he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jul 27 2023 | 11:20 PM IST

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