Weekly Power Sector Round up: 8th August 2020

Solar sector imports down 83%

Solar sector imports into the country fell 83% in the first quarter of the current fiscal year. Imports totaled only Rs 515 crore as opposed to Rs 2970 crore in the same period last year. These figures reflect the impact of the COVID-19 pandemic with several parts of the country under extended lockdown.

Various initiatives which attempt to check imports and boost domestic manufacturing are set to be implemented by the Govt of India which won’t help the recovery.

Govt extends ISTS waiver for renewable projects until June 2023

The Ministry of Power extended the waiver on inter state transmission system (ISTS) charges and losses on supply of power generated from solar and wind sources until 30th June 2023.

Additionally, no ISTS charges would be levied for the supply of energy to entities having renewable purchase obligations for 25 years from the date of commissioning of the power plants.

DISCOM’s outstanding dues to gencos rise 47% in June

Total amount owed by DISCOMs to power generation companies rose 47% to Rs 1.33 lakh crore in June 2020. The figure was Rs 90,655 crore in June 2019. This, according to the PRAAPTI portal.

In June 2020, the total overdue amount (amount not cleared in the grace period of 60 days either) stood at 1.2 lakh crore as against 72,362 crore at the same time last year.

This trend continues to highlight the mounting stress in the sector which has been compounded by the COVID pandemic. Liquidity infusion announced by the Govt through PFC and REC does not seem to have provided much relief to the DISCOMs with states requesting relief packages rather than loans.