Don’t charge late payment surcharge exceeding 12% under liquidity infusion scheme: Govt to power gencos

Ministry of Power on Saturday advised all power generation companies and transmission companies to charge late payment surcharge (LPS) at a rate not exceeding 12 per cent for payments under the Liquidity Infusion Scheme of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) under the Atmanirbhar Bharat campaign. The announcement was made to ease out the financial burden on discoms, according to the ministry. The LPS in many cases swing as high as 18 per cent to adversely impact discoms amid lockdown, the ministry added.

“In general, the applicable rate of Late Payment Surcharges is quite high despite the fact that interest rates in the country have softened over the last few years,” it said.