The total overdues of power distribution companies (discoms) to power generation companies (gencos) have fallen 73.5% to Rs 26,516.57 crore in less than a year of the introduction of Late Payment Surcharge (LPS) rule on June 3, 2022.
The overdues (excluding disputed amounts and LPSC) were a little over Rs 1 trillion as on May 18, 2022, as per Praapti portal.
The significant reductionin overdues is the direct result of the strict financial discipline brought in by the central government in the functioning of discoms to protect the entire value chain.
