The privately owned power generating companies which are reeling under escalating dues because of pending payment from states and litigation, have asked the ministry of power to set up a ‘Trade Receivables Discount System’ for the same.
The total pending dues of the power distribution companies (discoms) stand at Rs 41,240 crore as on January 2019. Of this, Rs 17,246 crore is dues from sale of power, Rs 6,865 crore are projects wanting compensation for change in law and Rs 17,128 crore arising out of several other litigation.
In a letter written to the ministry of power, Association of Power Producers (APP) said the delay in recovery of receivables, especially regulatory receivables, has created stress on the finances of private generators. APP is the representative body for private power generators.
