Data from the Ministry of Power showed that all current payments of gencos are up-to-date and the legacy dues of gencos have come down by 63 percent from Rs. 1.396 lakh crore to Rs. 51,268 crore in just over a year since the late payment surcharge rules were notified.
States and distribution companies have been asked to buy power aggregated from coal and gas-based plants that are older than 25 years.
Due to the surge in power demand and subsequent load-shedding, the Central Electricity Regulatory Commission on August 15 also directed all power distribution companies to promptly requisition their power needs to the generating companies
SERCs are expected to follow the norms of the tariff policy as mandated under the Electricity Act, so as to ensure that discoms remain financially viable. But most of the states have ignored this.
In 2021, the government had set the target to bring down AT&C losses to 12-15 percent by the financial year 2025. However, going by the latest provisional data, the government is likely to have achieved this target two years in advance.
When somebody says that power is free, it means that you pay more taxes because ultimately it is the taxpayer who is bearing the brunt of the free power, the Union minister for power said.
The Deviation Settlement Mechanism (DSM) rules for the wind industry, and the General Network Access (GNA) rules issued by CERC last year were the biggest triggers for the Power Ministry's directive, officials told Moneycontrol.
The coal stock situation is “manageable”, as of now, data accessed by Moneycontrol shows. Of the 165 domestic coal-based thermal power plants in the country, 32 had critical stocks. Last year at this time, the number of such plants was around 96.
On Friday, the Andhra Pradesh government insisted that it had no debt to the electrical producers for the electricity it had acquired through the power exchanges.
Subsequently, CIL awarded the contract for supply of 7.91 lakh tonnes of imported coal to PT Bara Daya Energy Ltd (consortium) to the interested gencos during August and September, sources said.
Domestic power producers have time till Friday to place orders for import of coal, failing which they will be allocated only 70 per cent of their requirement by the government, according to an official notification.
The ministry said that due to rising demand for electricity and coal supply from local coal companies falling short of demand, it has advised all Gencos, including IPPs, to blend 10 percent of imported coal for power generation by April 28, 2022.
According to an internal power ministry presentation , India is anticipated to confront a bigger coal shortfall in the quarter ending September as a result of higher power demand, increasing the likelihood of widespread power disruptions, according to a Reuters report.
Ahead of the monsoon season, the Union power minister expressed concern regarding the need for state Gencos to import coal in order to meet the power requirement.
A pick-up in collections and an improvement in payments to gencos hold out hope for discoms, but durable economic recovery and concrete policy steps key to meaningful revival
RG Gupta said much depends upon the specific conditions under which the hike was allowed by the CERC and the kind of agreement that they had entered into with the power gencos.