The merger of two leading government-owned financers of the power sector will have a negative effect on the borrowings of the beleaguered state-owned power distribution companies, claim power generators.
Gencos said dues from discoms would balloon as they would be unable to borrow from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
Senior executives of gencos have said discoms would close the year with higher-than-usual dues on their books. Discoms usually borrows towards the end of a financial year to settle dues.
The total outstanding dues of the discoms are Rs 26,437 crore, according to the power ministry’s portal. Of this, exposure to privately owned units is the highest (Rs 15,000 crore). This is followed by Rs 8,344 crore to NTPC and Rs 1,387 crore to NHPC. There are several other smaller gencos.