Power Minister asks Gencos to waive late fee on discom dues

New Delhi : The Union power ministry on Wednesday said it is working on a scheme to enable state power distribution companies to pay their power bills aggregating ₹1.06 lakh crore.

As per the proposed scheme, a one-time relaxation is being considered to be given to all the discoms wherein the amount outstanding, including principal and late surcharge, on the date of notification of the scheme will be frozen, an official statement said.

The total waiver by power generating companies will be ₹19,833 crore in the next 12 to 48 months.

The discoms will be given flexibility to pay the outstanding amount in upto 48 instalments. The generation companies will have to forego levying further late payment surcharge on the frozen amount.

However, in the case of delay in payment of an instalment by a discom, the late payment surcharge shall be payable on the entire outstanding dues which otherwise was exempted, the official statement said.


However, power generating companies were not happy with the proposal as some of them will have to forego large amount of late payment surcharge.

“These concessions should be only given if the generators can be insulated from future defaults. The Centre needs to ensure that prospectively the EMI for liquidated dues and current bills are paid in time . Therefore, a mechanism needs to be put in place. If there is default, Centre should have the right to adjust these payments from central transfers to defaulting state. Otherwise it would become a never ending cycle of defaults,” Association of Power Producers director general Ashok Khurana said.


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