Government’s 440 volt shock worked, Genco dues on discoms reduced by one-third in a year

Photo: File power crisis

Dues of electricity distribution companies (discoms) to power generators (gencos) have come down by nearly a third to Rs 93,000 crore in May this year. The Late Payment Surcharge (LPS) rule was implemented in June last year. Since then, in less than a year, the dues of the discoms have come down significantly. Till last year, genco dues to discoms were mainly affecting the entire value chain of the sector.

According to industry data, discoms owed Rs 1.39 lakh crore at the time the LPS scheme was launched in June last year. According to the ‘PRAPTI’ (Payment Ratification and Analysis in Power Procurement for Bringing Transparency in Invoicing of Generators) portal, the total dues have now come down to Rs 93,000 crore.

Prapti Portal was launched in May, 2018 to bring transparency in power purchase transactions. Experts believe that strict implementation of LPS rules can make the power sector more viable. This rule ensures that the discoms pay the dues on time. The scheme has played an important role in bringing financial discipline in the DISCOMs.

Latest Business News

Related articles

The United Kingdom recognized the cover-up of blood contaminated with HIV and hepatitis

An investigation revealed the biggest public health scandal in the UK: the deliberate cover-up by the British authorities between 1970 and 1991 of blood...

Massacre in Manta: At least four dead after an armed attack on a volleyball...

Manabí bleeds to death. A new massacre was recorded on a volleyball court in Manta during the night of this May 20. Videos...

Orense lost 1-0 against Técnico Universitario

Only a goal from Técnico Univ. at the Bellavista stadium made the difference in the duel against Orense on date 13 of the Ecuador...

Tesla Shareholders Urge to Reject Musk’s $56 Billion Pay Package

A coalition of shareholders Tesla Inc. is urging other investors to reject $56 billion pay package for CEO Elon Muskat the company's annual meeting...