Thanks to a special loan scheme by state-owned lenders Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), the dues of power distribution companies (discoms) towards power generators has reduced by Rs 24,000 crore. However, cumulative dues remain at a high of Rs 1.13 trillion.
A statement by the Union ministry of power said the dues have come down with the implementation of the Electricity (LPS and Related Matters) Rules, 2022.
The ministry said that the total outstanding dues of states, which were at Rs 1.37 trillion as on June 3, have been reduced by Rs 24,680 crore to Rs 1.13 trillion with timely payment of just four EMIs.
“For payment of EMI of Rs 24,680 crore, five states have taken a loan of Rs 16,812 crore from PFC & REC. Eight states have made their own arrangement,” said the statement.
It added that during the past five months, states have paid almost Rs 1.68 trillion of their current dues.
“Based on the results achieved so far, it is expected that strict implementation of the LPS Rules will bring back financial viability of the power sector. It would attract investment to ensure 24×7 electricity to consumers. The Rule may have played a vital role in ensuring financial discipline in discoms,” the power ministry said.