With state-run electricity distribution companies (discoms) missing key targets of the UDAY scheme, the government is looking at options to “insulate” these entities from the risk of delayed payments from bulk consumers such as local bodies and state government departments. Power ministry sources said that “these receivables of discoms are almost one and a half times their outstanding payables to generating companies”.
Discoms’ dues to power producers stood at `38,023 crore at the end of FY19, up 59.8% from a year earlier, and 65% of these were “over-dues” with a payment default of 60 days or more.
According to an internal power ministry note reviewed by FE, the central government’s plan to reduce the exposure of discoms from irregular payments include “installation of solar panels, and installation of prepaid meters on government buildings progressively”. It is also banking on the Kusum scheme, which envisages solarising agricultural feeders, to receive payments from state governments on time. “State government resources for subsidising agricultural electricity are likely to get freed up for electricity payments by the state government departments,” the note added.
