Private power producers urge Tangedco to clear dues early

The private power producers’ association has urged Tangedco’s CMD Pankaj Kumar Bansal to help settle their dues soon by availing the second tranche of the Centre’s liquidity infusion scheme for uninterrupted power supply during election.

The Centre had announced a liquidity infusion scheme as a part of Atma Nirbhar Bharat package to help distribution companies overcome the crisis caused by the pandemic. The scheme enables discoms to avail of loans from Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC) and clear the dues of the central generation and transmission companies, independent power producers and renewable energy generators.

Tangedco was sanctioned ₹30,230 crore under the package out of which ₹11,091 crore had been disbursed as on January 27, according to the information provided in the Rajya Sabha last month.

According to power producers’ body, Tangedco has disbursed the tranche 1 payment, which is 50% of energy dues in December 2020.

“Our members are waiting to receive the tranche 2 (i.e., balance 50%) payment through the scheme so as to enable them to meet their various back-to-back obligations pertaining to plant operations, debt servicing and other lender covenants,” Ashok Khurana, Director General, Association of Power Producers, said in his letter to Tangedco.

“Given the impending elections in Tamil Nadu, our members are keen to ensure uninterrupted power supply to Tangedco without resorting to invocation of Letter of Credit to avail payment or reporting the matter to Power System

The Hindu
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