Clear your power dues, PM Modi reminds states; here is what they owe

Prime Minister Narendra Modi on Saturday urged state governments to pay the money they owe to power distribution companies (discoms) and generating companies (gencos). He added that the outstanding dues that stretch over several months threaten the financial stability of these discoms and gencos.

According to the data from the power ministry, the states and the union territories (UTs) together owe over Rs 1 trillion to the gencos as of March 31, 2022. The total money owed to the discoms stands at Rs 1.3 trillion.

The delay in payments causes a shortfall in revenue for the power companies. The money that could have been used in upgrading the infrastructure of the distribution channel to reduce the wastage can then only be used to cover the operational costs. In India, the average transmission losses stand at over 20 per cent compared to 5-8 per cent in developed countries.

The non-availability of funds also reduces the amount of electricity produced for consumption. In 2022, several states witnessed long power cuts at the peak of the summers, including Uttar Pradesh, Maharashtra, Telangana, Tamil Nadu and Andhra Pradesh.

Also, on June 9, 2022, the power demand in the country touched an all-time high of 2,10,793 megawatts (MW). Due to limited infrastructure, the gencos were unable to match the demand, forcing the discoms to cut the supply for long hours in several regions.

How much do states and UTs owe to gencos and discoms?

According to data from the power ministry, Maharashtra owes a maximum of Rs 21,500 crore to the gencos. Tamil Nadu follows in second place with Rs 20,990 crore of dues to gencos, while Andhra Pradesh owes the third highest, Rs 10,109 crore.

Dues towards gencos

Infogram

On the other hand, Telangana owes the maximum to the discoms, with Rs 11,935 crore worth of dues. Maharashtra owes the second highest at Rs 9,131 crore, and Andhra Pradesh comes a close third with dues towards discoms at Rs 9,116 crore.

Subsidies owed to discoms and gencos

Infogram

Apart from the dues from states and UTs, the discoms are yet to receive Rs 76,337 crore from the state government in the form of subsidies under various programs, the power ministry data showed.

Rajasthan owes the maximum of Rs 15,597 crore to the discoms, and Punjab owes the second highest amount at Rs 9,020 crore.

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