Discoms’ ₹45,000-cr legacy dues to Gencos will be cleared in a year: RK Singh

The legacy dues that power distribution companies (Discoms) owe to generation companies (Gencos) will be cleared in less than a year from now, Minister of State (Independent Charge) for Power and New and Renewable Energy, RK Singh, said.

“With the Letter of Credit (LC) system in place, the generators are now confident of getting paid for their power supplies. That still leaves the legacy dues [before the LC system kicked in], which is a challenge. We are working out a timeframe of 8-9 months for it, so that the Discoms can make staggered payments over that period. If they don’t, we will put in place systems to make sure that the payment is made.