DISCOM’s outstanding dues rise 48% YOY to Rs 81,010 crore in October
Power GENCO’s total outstanding dues by DISCOMs rose 48% to Rs 81,010 crore in October 2019 as compared to the same month last year.
The total overdue amount, which is the amount outstanding after a 60 day grace period stood at Rs 67,143 crore, which is up 70% as compared to the same month last year.
Among major states, Andhra Pradesh tops the list with 913 days to make payments, followed by Rajasthan (912 days), Bihar (912 days), Haryana (910 days), Tamil Nadu (908 days), Madhya Pradesh(897 days) and Telangana (890 days) in that order.
Growth in the Renewable sector in India slumps to 5 year low
The renewable energy sector in India grew at 5.7% in the seven months leading up to October 2019, as opposed to 28.5% in the same period last year and 25% in 2018-19, according to the data issued by the Central Electricity Authority (CEA).
According to Government officials, the cutting of generation by the states and the slowdown in overall electricity demand are the primary factors for the the low renewable energy generation.
Power reform ordinance may be introduced as states stay divided
Lack of consensus among the states has meant that the Centre has been unable to introduce amendments to the Electricity Act 2003. The centre has thus decided to push through the reforms by way of an ordinance by early January.
This ordinance will have regulations to restrict cross-subsidy surcharge, ensure timely payment of generation dues by DISCOMs and make power contracts non-negotiable.
Through the ordinance, the Centre may also strengthen the institution of power regulators, carry out separation of power carriage and content operation of distributors and develop a system of penalty for non-finalisation of cost reflective tariff on time.