The outstanding dues of power distribution companies (discoms) to power generating companies or the gencos have reduced to Rs 91,061 crore in March, Parliament was informed on Thursday.
The outstanding dues which were at Rs 1,38,378 crore earlier declined to Rs 91,061 crore as on March 28, 2023, Union Minister for Power, New and Renewable Energy R. K. Singh said in a written reply to the Lok Sabha.
He further said that the government promulgated Electricity (Late Payment Surcharge and Related Matters) Rules 2022 on June 3, 2022, recognizing the cash flow problems arising out of outstanding receivables of gencos from the discoms and in order to increase basic payment discipline in the power sector value chain.
These rules entail obligations upon the discoms to clear their legacy or outstanding dues as existing on June 3, 2022 in a time bound and phased manner in equated monthly installments with benefits of non-applicability of late payment surcharge after June 3 of 2022, he said.
In a separate reply to the Lower House, Singh said there are several power plants designed for using high calorific value imported coal. Therefore, the imports of coal for power generation cannot be reduced to zero.
Cement, Sponge Iron, and Aluminium industries utilize high calorific value low ash imported coal. The coal requirement for such a category of consumers cannot be substituted by domestic coal, he said.
“With the increase in electricity demand, the supply of coal to the power plants is not commensurate with the domestic coal requirement. The gap between daily coal consumption and daily arrival of domestic coal ranged from 2.65 lakh tonne (LT) to 0.5 LT between the months of September 2022 and January 2023,” Singh said.
The minister explained that without imports of coal for blending, the coal stocks at thermal power plants would have reduced to zero in September 2022, leading to widespread power cuts and blackouts.
Therefore, Ministry of Power advised Central, State Gencos and Independent Power Producers (IPPs) on January 9, 2023, to import coal through a transparent competitive procurement for blending so as to have sufficient coal stocks at their power plants for smooth operations till September 2023.
