The outstanding dues of distribution utilities towards power producers have risen by over
57% to ₹73,748 crore in July this year, as compared to the same month last year,
showing stress in the sector.
According to the PRAAPTI portal, distribution companies (Discoms) owed a total
of ₹46,779 crore to power generation companies in July 2018. The portal was launched
in May 2018 to bring transparency in power purchase transactions between generators
In order to give relief to power generation companies, the Centre has enforced a
payment security mechanism from August 1. Under this mechanism, Discoms are
required to open letters of credit for getting power supply.
The data on the portal indicates that the outstanding as well as overdue amount has
increased over the preceding month. In June 2019, the total outstanding on discoms
was ₹69,905 crore, while the total overdue amount was ₹51,748 crore.
Builders going to the National Company Law Tribunal is becoming a headache for many
homebuyers. And with the Supreme Court holding the status of homebuyers as financial
creditors, many who are stuck with incomplete projects could soon find themselves being
part of the insolvency proceedings. In some cases, it has already started.
Coal India has abandoned its move to cut supplies to inefficient power plants following
resistance from customers. It had planned to cut the yearly quota by 80 million tonnes.
Coal India was to supply 560 million tonnes to these power companies going by their
consumption norms. According to the new calculation, they were to receive 477 million
tonnes, almost 83 million tonnes less.
A senior power company executive said the move would have reduced supply in the
sector that is growing at 6% per annum. It would have reduced capacity utilisation, which
is already down to around 60%, and increased losses apart from disrupting electricity
Demand for power fell 1.6% in August, accentuating concerns over the economic slowdown. A contraction had last been witnessed in February 2017, when consumption declined 2.7% year-on-year.
Demand fell in states like Maharashtra, Gujarat, Tamil Nadu, Jharkhand, Punjab and Odisha, where industrial and commercial users usually account for around 40% of electricity consumption, according to data by the Central Electricity Authority.
Electricity requirement also decreased in Haryana, which houses significant automobile and component manufacturing units (along with Maharashtra, Gujarat and Tamil Nadu), after a number of manufacturers recently announced temporary plant shutdowns and