MUMBAI: Dues of state-run power distribution companies to cash strapped power generators have increased by a third in April-January despite the government’s assurance that payments would be expedited.
As per data compiled by the Association of Power Producers, state-run power distribution companies (discoms) owed Rs 41,133 crore to private sector generators as on January 31, and many of these generators are struggling to keep their loan repayment schedule on track.
While these companies must pay state-run Coal IndiaNSE 0.00 % and Indian Railways in advance, they don’t receive payments from customers—the power distribution companies—on time.
