Private sector power producers have asked the ministry of power for an urgent resolution to the delays in payment by state-owned distribution companies (discoms), which in turn, will help stave off the massive loan defaults by the producers.
In a meeting with power ministry officials and bank executives on Tuesday, power company representatives also requested banks to extend loans to discoms that would enable them to clear their dues. Mint has reviewed a copy of the minutes of the meeting.
“Discoms owe more than ₹40,000 crore to power generators, out of which ₹18,500 crore is owed to private sector power producers,” Ashok Khurana, director general, Association of Power Producers, said in a phone interview.
