Outstanding legacy dues of power distribution utilities or discoms reduced to Rs 3,300 crore in March this year from Rs 1.39 lakh crore in June 2022, Parliament was informed on Thursday.
Government of India notified the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 on June 3, 2022.
As per the rules, all dues owed to generating companies (IPPs, CPSEs, and Renewable Energy Developers), traders, and TRANSCOs, including late payment surcharges, accrued up to June 3, 2022, were classified as legacy arrears.
These arrears were required to be rescheduled, with distribution licensees paying them in Equated Monthly Installments (EMIs), stated Minister of State for Power Shripad Naik in a written reply to the Lok Sabha.
The rules also provide a framework for the time-bound clearance of current dues.
As a result, the outstanding legacy dues have reduced from Rs 1,39,947 crore as on June 3, 2022 to Rs 3,330 crore on March 27, 2026, the minister stated.
Distribution …Outstanding legacy dues of power distribution utilities or discoms reduced to Rs 3,300 crore in March this year from Rs 1.39 lakh crore in June 2022, Parliament was informed on Thursday.
Government of India notified the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 on June 3, 2022.
As per the rules, all dues owed to generating companies (IPPs, CPSEs, and Renewable Energy Developers), traders, and TRANSCOs, including late payment surcharges, accrued up to June 3, 2022, were classified as legacy arrears.
These arrears were required to be rescheduled, with distribution licensees paying them in Equated Monthly Installments (EMIs), stated Minister of State for Power Shripad Naik in a written reply to the Lok Sabha.
The rules also provide a framework for the time-bound clearance of current dues.
As a result, the outstanding legacy dues have reduced from Rs 1,39,947 crore as on June 3, 2022 to Rs 3,330 crore on March 27, 2026, the minister stated.
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