POWER

UPPCL cash gap swells to Rs 13000 crore in April-September period, dues to gencos at Rs 17,000 crore

Despite continuous infusion of funds by way of loans from PFC-REC, power distribution companies (discoms) in Uttar Pradesh are in a precarious financial position, mainly due to inadequate revenue collection. The cumulative cash gap of the five discoms in the state from April to September has burgeoned to approximately Rs 13,000 crore, owing to which the Uttar Pradesh Power Corporation (UPPCL) is unable to make timely payments to generators supplying power to the state.

UPPCL’s cash gap for the first six months of 2020-21 was Rs 12,000 crore. Dues to generating companies, including state-run generators, have shot up to over Rs 17,000 crore. While the dues to CPSUs stand at Rs 2,200 crore, dues to independent power producers stand at Rs 6,000 crore and those to Uttar Pradesh Rajya Utpadan Nigam (state generating company) are at Rs 9,000 crore.

Speaking to FE, UPPCL chairman M Devraj said discoms have purchased electricity worth Rs 34,670 crore from April to September, while the revenue collection (from non-government consumers) has only been Rs 21,794 crore, which is just 63% of the power purchase cost.

“It is true that revenue collection has been falling short of the target. This is a matter of concern as the producers from whom electricity is being procured are not getting their payments on time. The MDs of all the power companies have been given strict instructions to increase the revenue collection by regular intensive monitoring so that the situation can improve,” he said.

Till September 20, against the non-government revenue collection target of Rs 4,912 crore for September, the total collections were Rs 2485 crore, merely 50.60% of the target.

Source
financial express
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