Private power producers have urged the government to consider extending the trade receivables discounting system (TReDS) applicable for MSMEs to them to help resolve their payment woes, which are to the tune ₹41,240 crore.
In a letter to Power Secretary Ajay Kumar Bhalla, the Association of Power Producers on Friday said the delay in recovery of receivables, especially regulatory receivables, has created stress on their finances as it impacts their ability to service debt and severely restricts working capital liquidity.
According to the letter, as of end-January, the amount of receivables due from discoms is to the tune of ₹41,240 crore, of which dues from sale of power are around ₹17,246 crore, while dues stuck in litigation are worth ₹17,128 crore and nearly ₹6,865 crore of receivables are pending despite adjudication.
