Discoms Have Total Unpaid Dues of Rs 29,136cr, R.K.Singh tells Rajya Sabha

Union Power Minister RK Singh informed Rajya Sabha today that the electricity distribution companies (Discoms) had a total unpaid dues of Rs 29,136 crore as of July 24, 2023. These payments were to be made to the country’s power-generating companies (gencos). It was in addition to the balance legacy dues of Rs 61,025 crore.

The information was shared by the minister while responding to an unstarred question posed by a member of the parliament on the issue. According to the minister’s details, the Tamil Nadu Generation and Distribution Company reported the highest unpaid due at Rs 4,578 crore. It was followed by Gujarat Urja Vikas Nigam Limited (GUVNL), which had a total due of Rs 3,532 crore. Uttar Pradesh Power Corporation Limited (UPPCL) had the third highest due of Rs 3,153 crore.

The minister said that to counter the issue of late payments and pilling up dues, the government had issued the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 on June 3, 2022.

“These rules entail obligations upon the DISCOMs to clear their legacy dues as existing on 03.06.2022 in a time bound phased manner in equated monthly installments with benefits of non-applicability of late payment surcharge after 03.06.2022. These rules also provide framework for time bound clearance of current dues and disincentives of progressive withdrawal of open access as well as power regulations if the provisions of the Rules are not followed. DISCOMs can avail loans from PFC Ltd. and REC Ltd. to clear their dues to Generating Companies,” the minister said.

Singh said that with implementing the Electricity (LPS and Related Matters) Rules, 2022, remarkable improvements in the recovery of outstanding dues were reported.

“13 States reported legacy dues and opted for EMI options under LPS rules with total outstanding amounting to Rs.1,39,747 Crore as on 03.06.2022 (dues towards Gencos Rs. 1,20,540 Cr.). After payment of 12 EMIs as well as pre-payment by some DISCOMs, total amount of Rs. 69,790 Cr has been paid (dues paid for Gencos Rs. 59,516 Cr.) & outstanding amount has been reduced to Rs. 69,957 Cr (balance dues towards Genco is Rs. 61,025 Cr.). Further, 20 States/ UTs reported to have no outstanding dues as on 03.06.2022. Distribution companies are also paying their current dues in time to avoid regulations
under the rule,” the minister said.