Total outstanding dues of States reduced by Rs 24,680 crore: Ministry of Power
Post by ANI on Wednesday, November 30, 2022
With the implementation of Electricity (LPS and Related Matters) Rules, 2022, the Ministry of Power on Wednesday said that there has been a remarkable improvement in the recovery of outstanding power dues of suppliers including generating companies, transmission companies and traders.
In a statement, the ministry said the total outstanding dues of States which were at Rs 137,949 crore as on June 3, 2022, have been reduced by Rs 24,680 crore to Rs 113,269 crore with the timely payment of just four (4) EMIs. "For payment of EMI of Rs 24,680 crore, five States have taken a loan of Rs 16,812 crore from PFC and REC and eight States have opted to make their own arrangement," the ministry said in the statement.
Ministry further said that power distribution companies are also paying their current dues on time to avoid regulations under the rule. Distribution companies have paid almost Rs 168,000 crore of current dues in the last 5 months.
"Presently, only one distribution utility i.e. JBVNL is under regulation for non-payment of current dues. Outstanding dues of distribution companies on trigger date have been reduced to Rs 205 crore from Rs 5085 crore as of 18.08.2022," Ministry of Power said.
Based on the results achieved so far, it is expected that strict implementation of the LPS Rules will bring back the financial viability of the power sector in the country and would attract investment to ensure reliable 24x7 electricity to the consumers. This Rule has not only ensured that the outstanding dues are liquidated but has also ensured that the current dues are paid on time. (ANI)