Govt converts Discoms' dues into EMIs now
These EMIs have maximum tenure of 4 yrs; Outstanding dues of electricity distribution cos towards gencos remain over Rs1 lakh cr; Discoms’ dues to be cleared by 2026: RK Singh
image for illustrative purpose
New Delhi: Outstanding dues of electricity distribution companies (discoms) towards gencos, which remains over Rs1 lakh crore at any point of time, will be eliminated in the next four years, Union power minister RK Singh said.
The government has converted the total outstanding dues of discoms toward gencos (power generator companies) into Equated Monthly Instalments (EMIs). These EMIs have maximum tenure of four years and thus the total outstanding dues of discoms would be nil by 2026. "The total outstanding dues of the discoms towards gencos is around Rs1,13,000 crore. These dues would be totally cleared by 2026," Singh told PTI.
Singh explained that the government has put a very robust payment security mechanism for the power sector knowing about the perennial issue of bulging dues of discoms toward gencos. He informed that the power ministry has put in place late payment fee Electricity, (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules 2022) which would trigger snapping of discoms' access to power exchanges for procuring supplies in case of non-payment of late payment surcharge.
