India has asked power producers to bill electricity buyers every week to ensure adequate cash flow as costs surge due to higher imports of expensive coal, according to a federal power ministry letter seen by Reuters.
A scorching heatwave and the lowest fuel inventories at power plants in years have forced India to reverse a policy to slash coal imports. The move could put further pressure on power distribution companies that are saddled with debt and already owe huge sums to generators.
Power distribution companies had to ensure payment of at least 15 per cent of the provisional bill to electricity producers within a week, the letter dated May 26 to power generating companies and state and federal energy officials read.
