IPPs seek stricter rules to ensure quicker payments from discoms

With state-run electricity distribution companies’ (discoms’) overdues — pending receivables of 45 days or more — to private power producers increased 28.3% on year to Rs 50,060 crore at October-end, independent power producers (IPPs) have demanded stricter regulations to make it more difficult for the defaulting states to procure electricity from other sources when power plants cut supplies.

According to sources, a delegation from the Association of Power Producers (APP) recently informed Union power minister RK Singh that the situation has become unsustainable for IPPs, and urged the government to find a solution to ensure steady payments from discoms.