Electricity consumers will get huge relief, distribution companies are preparing this scheme.

Electricity consumers, states like Tamil Nadu and Maharashtra, which are heavily indebted, will benefit from the move to the tune of over Rs 4,500 crore.
Electricity consumers will get huge relief, distribution companies are preparing this scheme.
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Power consumers. The Ministry of Power is working on a major project to pay off the past dues of DISCOM. Production companies owe Rs 1,00,018 crore to Discoms till May 18, 2022. Importantly, he may be allowed to pay the arrears in 48 monthly installments. A surcharge of Rs 19,833 crore will also be saved on late payment. Electricity consumers will be relieved by this amount, as it will not be shifted to retail, tariffs, while states like Maharashtra and Tamil Nadu will save about Rs 4,500 crore. Power generating companies will definitely benefit from the monthly payment.

The ministry is working on a plan.

In fact, DISCOM’s inability to pay its dues hinders the entire electricity pricing process. In view of this situation, the Ministry is working on a plan to alleviate the financial woes of power distribution companies (DISCOMS) which are unable to pay their dues.

Delay in payment by DISCOM to the manufacturing company affects the cash flow of these companies, which needs to make arrangements for the supply of input in the form of coal. Adequate working capital is required for daily operation of the power plant.

1,00,018 crore is outstanding on DISCOM.

DISCOM’s liabilities (excluding disputed amount and late payment surcharge (LPSC)) were Rs.1,00,018 crore and LPSC liabilities till May 18, 2022 were Rs.6,839 crore. The proposed scheme facilitates payment of financial obligations in easy installments through DISCOM. – Discounts are being considered for DISCOMs who have arrears till the date of notification of the scheme.

More savings for Tamil Nadu, Maharashtra

States like Tamil Nadu and Maharashtra, which are heavily indebted, will benefit from the move to the tune of over Rs 4,500 crore. Uttar Pradesh will get about Rs 2,500 crore while states like Andhra Pradesh, Jammu and Kashmir, Rajasthan and Telangana will get Rs 1,100 crore to Rs 1,700 crore. The savings made by DISCOM will ultimately benefit power consumers which will reduce the burden of LPSC on retail charges.

The move is expected to lead to timely payment of dues, which is crucial for companies creating competition over the amount remaining on the LPSC. At the same time, steps are being taken to ensure that DISCOMs pay their dues to Gencos on a regular basis, otherwise the supply from Gencos will be reduced.


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