CEA panel moots TReDS-type e-platform for discoms to pay independent power producers

The panel formed under the chairman of the Central Electricity Authority (CEA) to explore prepaid payments by State discoms to independent power producers (IPPS) has suggested setting up an e-platform for discounting of bills on the lines of the system being used by MSMEs.

In February, the government had constituted a panel under the CEA to explore prepaid payments options by State electricity distribution companies, which are known for delayed payments, to power plants.

Following this, in June, the Power Ministry had mandated State-run discoms to offer letters of credit (LCs) against their power purchases as a payment security from August 1. Since then most discoms have started issuing LCs.

The panel was headed by CEA Chairman Prakash Mhaske and had members from the Power Ministry, power producers and two State-run discoms.