New Delhi, Oct 8 (IANS) Green shoots of economic revival has become visible in the power sector with discoms reporting a sharp pick-up in collection during July-September quarter on account of the opening up of the economy after easing of lockdown restrictions.
What is even more encouraging that collections, which fell sharply in first quarter of FY21 due to lockdowns, has recovered to 90-95 per cent levels in the unlock months with electricity re arks being paid by consumers in both ur ban and rural segments.
According to power sector update by Emkay Global Financial Services, the improving conditions in power sector with demand reaching pre-covid levels and generation rising 3 per cent in September, will also put a rosier picture of the discoms overdue status that will start showing signs of improvement from this month.
Power distribution companies’ (discoms) pending dues to power generation companies (gencos) has grown 40 per cent yoy (2 per cent mom) to Rs 1.2 lakh crore as of August 2020. Total outstanding stood at Rs 1.33 lakh crore up 38 per cent yoy (2 per cent mom) – almost reaching its November 2015 peak of Rs 1.35 lakh crore.
However, with improvement in collection efficiencies and disbursements being made by PFC and REC to discoms under Atmanirbhar Bharat liquidity package, the state of discoms is set for improvement.
PFC and REC have extended loans for dues pending till June 2020 (Rs 1.28 lakh crore), extending the previous set limit of Rs 90,000 crore as of March 2020. Till date, loans worth Rs 27,900 crore have been disbursed and Rs 90,800 has been sanctioned to discoms under the scheme.
Of the total discom overdue to gencos, CPSEs have the highest share at 36.6 per cent , followed by independent power producers (32.1 per cent), state gencos (22.3 per cent) and renewable energy producers (9.1 per cent).
Among private gencos, Adani Power has the highest share in the total overdue at Rs20100 crore (52% of IPPs overdue/17% of total overdue). Similarly, du es owed to NTPC are the highest among CPSEs at Rs23500 crore (53% of CPSEs/ 20% of total overdue).
Among all discoms, Rajasthan discom has the highest share of 30% in the total overdue at Rs 36,500 crore , which increased 40 per cent yoy (+2 per cent mom). Tamil Nadu di scom is the second highest with a 16 per cent share at Rs 19,600 crore, which is up 38 per cent yoy (4 per cent mom). Uttar Pradesh, the third- highest with an 11 per cent share, saw its outstanding dues rise to Rs 12,700 crore in August 2020, up 85 per cent yoy (-5 per cent mom) .
On a mom basis, Karnataka and J&K saw its dues rise 7 per cent and 6 per cent mom, respectively, in August 20, highest among major states. On the contrary, UP and Mahar ashtra saw their dues fall by 5 per cent and 4 per cent, respectively, in Aug’20 vs. Jul’20.
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