Discoms' dues down by a third to ₹93,000 cr in less than a year of enforcing Late Payment Surcharge Rule
The Hindu
With the implementation of late payment surcharge fees, the total outstanding dues of discoms has reduced by a third.
The total outstanding dues of electricity distribution utilities (discoms) has reduced by a third to around ₹93,000 crore in May, in less than year of implementing the Late Payment Surcharge (LPS) Rules in June 2022.
The burgeoning dues of discoms toward power generation (gencos) mainly and transmission (trancos) firms have been affecting the entire value chain of the sector till last year.
According to industry data, in June last year, discoms' dues were at ₹1.39 lakh crore at the time of the launch of the Late Payment Surcharge (LPS) scheme.
The total outstanding dues now stand at around ₹93,000 crore as per the portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).
The PRAAPTI portal was launched in May 2018, to bring transparency in power purchase transactions between generators and discoms.
Experts believe the strict implementation of the Late Payment Surcharge (LPS) Rules can make the power sector more viable.
The Rule ensures that the outstanding discom dues are paid well in time. Besides, it has also ensured the payment of current dues in time. The scheme has played a key role to bring financial discipline among discoms.
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