Lok Sabha Question No. 1321 (UNSTARRED), answered on 2023-07-27
Subject: Dues pending with Discoms
Ministry: POWER
Asked by: Jagdambika Pal

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1321

## ANSWERED ON 27.07.2023

## DUES PENDING WITH DISCOMS

1321. SHRI JAGDAMBIKA PAL:

Will the Minister of POWER be pleased to state:

- (a) whether the financial  dues with  Discoms  or State  owned  power distributors have reduced during the last three years and if so, the details thereof;
- (b) the  details  of  the  approximate  dues  pending  with  Discoms  till  June  2023, State-wise;
- (c) the steps taken by the Government to reduce the dues with the Discoms; and
- (d) the details of the five States which have highest dues with Discoms?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

- (a) : With the implementation of Electricity (LPS and Related Matters) Rules, 2022,  remarkable  improvement  has  been  seen  in  recovery  of  outstanding  dues  of Suppliers including Generating and Transmission Companies.  The total outstanding dues of States which were at Rs. 1,39,747 Cr. as on 03.06.2022 have been reduced to  Rs.  69,957  Cr.  with  timely  payment of twelve (12) EMIs. Distribution companies are also paying their current dues in time to avoid regulations under the rule.

## As per PRAAPTI portal, Genco dues trend over last 3 years are as below:

| Year                                                                              | Genco Dues (Rs. Cr.)                                               |
|-----------------------------------------------------------------------------------|--------------------------------------------------------------------|
| Balance Legacy Genco Dues, as on April, 2021                                      | 83,161                                                             |
| Balance Legacy Genco Dues, as on April, 2022                                      | 1,03,725                                                           |
| Balance Legacy Genco Dues, as on 03.06.2022 (Date of implementation of LPS Rules) | 1,20,540 (Rs. 1,39,747 Cr. including dues of Transcos and Traders) |
| Balance Legacy Genco Dues, as on 24.07.2023 after payment for 12 EMI              | 61,025 (Rs. 69,957 Cr. including dues of Transcos and Traders)     |

| Summary of Dues of DISCOMs to be paid to Supplier*   | Summary of Dues of DISCOMs to be paid to Supplier*             | Summary of Dues of DISCOMs to be paid to Supplier*   |
|------------------------------------------------------|----------------------------------------------------------------|------------------------------------------------------|
| Sl. No.                                              | Particular                                                     | Rs in crore                                          |
| 1                                                    | Balance Legacy Dues, as on 30.06.2023 after payment for 11 EMI | 75,535                                               |
| 2                                                    | Current dues as on 30.06.2023 (As per PRAAPTI Portal)          | 44,386                                               |

The State/UT-wise details are at Annexure.

(c) : Recognizing  the  cash  flow  problems  arising  out  of  outstanding  receivables  of Generating Companies from DISCOMs and in order to increase basic payment discipline in the power sector value chain, sustenance of which has been a matter of concern due to increasing receivables to Gencos,  recently,  Government  of  India  promulgated Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 on 3 rd  June, 2022. These rules entail obligations upon the DISCOMs to clear their legacy dues as existing on  03.06.2022  in  a  time  bound  phased  manner  in  equated  monthly  installments  with benefits of non applicability of late payment surcharge after 03.06.2022. These rules also provide framework for time bound clearance of current dues through establishment of a Payment Security Mechanism and disincentives of progressive withdrawal of access as well as power regulations if the provisions of the Rules are not followed. DISCOMs can avail loans from PFC Ltd. and REC Ltd. to clear their dues to Generating Companies.

Under the Revamped Distribution Sector Scheme (RDSS) launched by Government of India, compliance to LPS Rules by Discoms has been prescribed under the Result Evaluation Framework for evaluating the DISCOMs  for availing financial assistance under the scheme.

Further,  Ministry  of  Power,  has  introduced  Additional  Prudential  Norms  for sanctioning  of  working  capital  loans  to  State  DISCOMs/  TRANSCOs/  GENCOs.  These essentially  entail  that  loans  to  DISCOMs  and  other  State  owned  utilities  would  be contingent  to  their  performance  against  prescribed  conditions.  The  prudential  norms, among other conditions, include  compliance to LPS Rules by Discoms. The Ministry of Power  has  also  requested  all  other  FIs/  Banks  to  adopt  and  implement  the  Revised Additional Prudential Norms for working capital loan to DISCOMS/ TRANSCOs/ GENCOs.

## (d) : Details  of  top  five  States,  which  have  highest  dues  with  DISCOMs  as  on 24.07.2023 are as under:

|   Sl. No. | Sates             | Balance legacy dues after 12th EMI (In Rs. Crore)   | Current Dues (In Rs. Crore)   |
|-----------|-------------------|-----------------------------------------------------|-------------------------------|
|         1 | Tamil Nadu        | 12,560                                              | 5,118                         |
|         2 | Maharashtra       | 12,595                                              | 2,713                         |
|         3 | Karnataka         | 9,655                                               | 2,365                         |
|         4 | Rajasthan         | 8,452                                               | 1,711                         |
|         5 | Jammu and Kashmir | 6,376                                               | 426                           |

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## ANNEXURE

## ANNEXURE REFERRED IN REPLY TO PART (b) OF UNSTARRED QUESTION NO. 1321 ANSWERED IN THE LOK SABHA ON 27.07.2023

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| Sl. No.   | States            | Balance legacy dues as on 30.06.2023 after 11th EMI (Rs. Cr)   | Current dues as on 30.06.2023 (Rs. Cr)   |
|-----------|-------------------|----------------------------------------------------------------|------------------------------------------|
| 1         | Maharashtra       | 12,989                                                         | 19,890                                   |
| 2         | Tamil Nadu        | 12,925                                                         | 5,969                                    |
| 3         | Karnataka         | 9,920                                                          | 1,992                                    |
| 4         | Rajasthan         | 9,219                                                          | 1,944                                    |
| 5         | Uttar Pradesh     | 4,903                                                          | 2,892                                    |
| 6         | Jammu And Kashmir | 6,869                                                          | 181                                      |
| 7         | Telangana         | 4,315                                                          | 2,364                                    |
| 8         | Madhya Pradesh    | 6,164                                                          | 492                                      |
| 9         | Andhra Pradesh    | 1,975                                                          | 1,583                                    |
| 10        | Jharkhand         | 3,144                                                          | 233                                      |
| 11        | Chhattisgarh      | 3,018                                                          | 174                                      |
| 12        | Punjab            | -                                                              | 2,152                                    |
| 13        | Gujarat           | -                                                              | 1,690                                    |
| 14        | Delhi             | -                                                              | 614                                      |
| 15        | Bihar             | 80                                                             | 467                                      |
| 16        | Odisha            | -                                                              | 527                                      |
| 17        | Haryana           | -                                                              | 394                                      |
| 18        | West Bengal       | -                                                              | 163                                      |
| 19        | Tripura           | -                                                              | 151                                      |
| 20        | Kerala            | -                                                              | 129                                      |
| 21        | Himachal Pradesh  | -                                                              | 91                                       |
| 22        | Dnh&Dd            | -                                                              | 90                                       |
| 23        | Manipur           | 14                                                             | 57                                       |
| 24        | Meghalaya         | -                                                              | 35                                       |
| 25        | Mizoram           | -                                                              | 30                                       |
| 26        | Assam             | -                                                              | 27                                       |
| 27        | Chandigarh        | -                                                              | 19                                       |
| 28        | Uttarakhand       | -                                                              | 16                                       |
| 29        | Nagaland          | -                                                              | 8                                        |
| 30        | Puducherry        | -                                                              | 7                                        |
| 31        | Sikkim            | -                                                              | 5                                        |
|           | Total             | 75,535                                                         | 44,386                                   |

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