Dues under LPS rules: States clear dues of 12 discoms with 15 discoms yet to clear


New Delhi/ Hyderabad/ Amravati/ Chennai, August 19

A day after the Power System Operation Corporation (POSOCO) barred 27 discoms across 13 States from procuring electricity via power exchanges, 12 discoms in six States have cleared dues of ₹3,608.83 crore under the Late Payment Surcharge (LPS) rules.

As per data compiled by the PRAAPTI portal, as on August 18, the total dues outstanding for 15 discoms across seven states was ₹1,476.17 crore. The list only includes discoms with an outstanding amount of more than ₹1 crore. As on August 17, the total dues of 27 discoms in 13 states was ₹5,085 crore.

The Centre is hardening its stance over outstanding dues. Power Ministry sources said the LPS rules mechanism is devised so that gencos do not have to face financial constraints and discoms uphold their payment commitments.

“Action under LPS was necessary with respect to States upholding their commitments. It was repeatedly pointed out about the outstanding dues. The action was taken after due process. It is pertinent to the financial health of the sector. Payment discipline is crucial, more so, as we chart our energy transition,” said a senior government official.

The State governments of Tamil Nadu, Telangana, Andhra Pradesh, Madhya Pradesh and Karnataka are already in touch with their counterparts at the Centre to clear the issues, sources said.

Meanwhile, Chief Minister of Telangana K Chandrashekar Rao held a meeting on Friday with top officials and Power Minister G Jagadish Reddy to review the situation arising from the development. The power utility in the state has hinted at likely disruptions in power supply in the next few days.

“We could not draw 20 million units today because of the Centre’s move to bar us from purchasing power from the exchanges. It is unfortunate that we were barred even after paying ₹1,360 crore,” a top official of the utility said.

States spring into action

The Telangana government asserted that its Discom has no dues. “We don’t have a single rupee. The Centre’s move is politically motivated. The BJP, through the government at the Centre, is trying to settle scores with opposition states,” Telangana Power Minister G Jagadis Reddy said.

“We are the only State in the country that is providing 24-hour power supply to consumers in all segments,” he said, adding the Centre had no locus standi on the issue as it was not a signatory when the states and power suppliers signed the agreements.

“If either of the signatories faces an issue, there are redressal mechanisms available to settle it,” he added.

“Since we received copious rain recently, we are generating hydro power to the maximum level possible. We are able to meet the demand for 12,200 MW today without any interruptions,” a Telangana official said.

Andhra Pradesh informed that the restriction imposed on short-term access to electricity markets imposed on state discoms has been lifted from August 19, 2022.

“On August 18, 2022, ₹412 crore was shown as due to generators in the PRAAPTI portal. As per LPS rules, short-term access to the electricity markets was restricted by NLDC as per information in the portal,’‘ the State government said in a statement.

However, these dues were already paid to the Gencos. Some of the dues shown in the PRAAPTI portal were liquidated under the LPS scheme, the government said, adding “AP Discoms have strictly followed the LPS rules 2022. There are no overdues pending as of date for the generators. The second instalment under the LPS scheme is going to be due on September 5, 2022.”

AP DISCOMs met a total state demand of 211 million units (MU) without any interruptions on Thursday and are expected to meet a total state demand of 208 MU on Friday.

The Tamil Nadu Generation and Distribution Corporation (Tangedco) has informed that the dues to be paid for power sourced through exchanges is only ₹90 crore, which would be paid in a couple of days.

“After a reconciliation, the due amount has come down to ₹90 crore from ₹900 crore plus as we have made some payments in the previous days. Tangedco has agreed to pay the correct due amount of ₹90 crore on Saturday as banks were closed on Friday and the issue will be resolved on Saturday,” a senior official of Tangedco told BusinessLine.

Published on

August 19, 2022

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