POWER

Power ministry invokes RBI pact to recover Rs 30,087 crore dues from states

Overdues of Central generation companies (gencos) have dropped by nearly a third to Rs 35,314 crore in August from Rs 49,780 crore a year after the power ministry invoked tripartite agreements with defaulting states and the RBI to recover outstanding amounts and asked power plants under its wings to snap supply to utilities that failed to pay their bills on time.

Under Raj Kumar Singh’s watch, the ministry has invoked tripartite agreements with Jharkhand, Karnataka and Tamil Nadu for recovery of combined overdues of Rs 30,087 crore, taking a politically non-partisan approach in tackling one of the banes of India’s power sector.

As of August 31, Jharkhand had an outstanding of Rs 3,292 crore. The ministry recovered Rs 714 crore by invoking the tripartite agreement and has served notice for recovery of Rs 1,126 crore. Karnataka discoms had an outstanding of Rs. 5,240 crore. Recovery notices have been issued for overdues of Rs 1,540 crore.

Tamil Nadu discom had an outstanding of Rs 21,555 crore and notice for recovery of Rs 2,458 crore has been issued.

Source
ET Energy World
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