Power Ministry asks plants to charge late fee at less than 12% per annum
NEW DELHI: The power ministry has advised all power generating companies and transmission companies to charge late payment surcharge from distribution utilities at a rate not exceeding 12% per annum for all payments made under the liquidity infusion scheme under Atmanirbhar Bharat. The move is aimed at easing the financial burden on power distribution utilities, an official statement said.
“In general, the applicable rate of Late Payment Surcharges (LPS) is quite high despite the fact that interest rates in the country have softened over the last few years. The rate of LPS in many cases ranges upto 18% per annum and has adversely impacted discoms during this difficult phase of lockdown imposed on account of COVID-19 pandemic,” the statement said.
