Power ministry working on easy instalment scheme to mitigate discoms’ financial woes

Considering that the discoms’ inability to pay dues adversely affects the entire value chain of the sector, the Ministry of Power is working on a scheme to mitigate the financial woes of the power distribution companies.

States such as Maharashtra and Tamil Nadu will be able to save Rs 4500 crore each under the new scheme. The delay in payments by a discom affects a power-generating company as the latter needs to make provisions for input supplies such as coal and for keeping adequate working capital for the day-to-day operation of its power plant.

As per per data available on the ministry’s Payment Ratification and Analysis in Power Procurement for Bringing Transparency n Invoicing of Generators app,