Central Electricity Authority to monitor state discoms’ non-payment of US$420m to renewable generators, says GlobalData

The Central Electricity Authority (CEA) affirms that state discoms across India owe over US$420m (INR30.12bn) to renewable energy generation companies for 5,981.67MW of capacity supplied. The move to monitor and maintain a database by the CEA over non-payment of dues by state discoms will bring transparency and ease out payments, says GlobalData, a leading data and analytics company.

The highest quantum of dues was claimed by Vena Energy, Skeiron Renewable Amidyala Power Private Ltd (recently acquired by Greenko Group) and Axis Wind. Vena Energy, which owns an operational renewable portfolio of 620MW in India, raised the highest claim of US$47m (INR 3.34bn) for a supply of 412MW.

Skeiron Renewable Amidyala Power Private Ltd, which was recently acquired by Greenko Group, claimed a due of US$21m (INR 1.5bn) for supplying 226.8MW to the Andhra Pradesh Southern Power Distribution Company Ltd (APSPDCL). APSPDCL also owes US$14m (INR 1bn) to Axis Wind for supplying 210MW of electricity.

Highest dues on pending claims were recorded against APSPDCL followed by the Southern Power Distribution Company of Telangana (TSSPDCL). There were 27 claims against APSPDCL, 25 against TSSPDCL, 14 against Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco), 10 each against NTPC Ltd. and the Himachal Pradesh State Electricity Board (HPSEB), and 8 against the Bangalore Electricity Supply Company Ltd (BESCL).

Pavan Vyakaranam, Project Manager at GlobalData, comments: “Delays in payments to power generation companies by discoms had been the biggest issue for many years now in the Indian power sector. The move to monitor and maintain a database by CEA over non-payment of dues will bring transparency and ease out payments. It may also discourage investors to enter into agreements with such discoms which pose high risk of non-payment.”

CEA had taken notice of the matter and in a letter dated August 5, 2019; CEA had sought information from renewable generators over non-payment of dues by Discoms. In order to monitor the situation, CEA will maintain a database of all outstanding dues by discoms to renewable generators and had asked renewable generators to provide details of such dues on a monthly basis. CEA will provide access to designated contacts of renewable generators to PRAAPTI (Payment Ratification and Analysis in Power Procurement for bringing Transparency in Invoicing of generators) portal.

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