News

Private Power Investments at Risk

<p>In some cases, the discoms continue to press for renegotiating terms of power purchase agreement (PPA). This coupled with non-payment of penalties/late payment surcharges is causing financial stress for such projects</p><p>NEW DELHI: As much as Rs 3 lakh crore of investment in a dozen Power plants of the private sector is at risk of turning into NPA as states buying power have not been making payment for months.<br><br>According to data available on the PRAAPTI portal of the Ministry of Power, 12 power generating companies belonging to firms such as GMR and Adan i Group and public sector generators like NTPC have about Rs 41,730 crore outstanding from state distribution companies (discoms) as of December 2018.<br><br>Dues as on date run into an estimated Rs 60,000 crore, half of it being towards independent power producers in Power Sector.<br>Other states not paying power generating companies on time include Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh and Punjab.</p><p>More than 80 per cent of the outstanding is accounted for by India\'s most industrialised states such as Maharashtra and Tamil Nadu who are biggest consumers of electricity. The top-10 states take an average of 562 days for payments.</p><p>In some cases, the discoms continue to press for renegotiating terms of power purchase agreement (PPA). This coupled with non-payment of penalties/late payment surcharges is causing financial stress for such projects.</p><p>' placeholder="Enter headline of the news" minlength="5" maxlength="150"></p><p> </p><p>' placeholder="Enter headline of the news" minlength="5" maxlength="150"></p><p>In some cases, the discoms continue to press for renegotiating terms of power purchase agreement (PPA). This coupled with non-payment of penalties/late payment surcharges is causing financial stress for such projects</p><p>NEW DELHI: As much as Rs 3 lakh crore of investment in a dozen Power plants of the private sector is at risk of turning into NPA as states buying power have not been making payment for months.<br><br>According to data available on the PRAAPTI portal of the Ministry of Power, 12 power generating companies belonging to firms such as GMR and Adan i Group and public sector generators like NTPC have about Rs 41,730 crore outstanding from state distribution companies (discoms) as of December 2018.<br><br>Dues as on date run into an estimated Rs 60,000 crore, half of it being towards independent power producers in Power Sector.<br>Other states not paying power generating companies on time include Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh and Punjab.</p><p>More than 80 per cent of the outstanding is accounted for by India\'s most industrialised states such as Maharashtra and Tamil Nadu who are biggest consumers of electricity. The top-10 states take an average of 562 days for payments.</p><p>In some cases, the discoms continue to press for renegotiating terms of power purchase agreement (PPA). This coupled with non-payment of penalties/late payment surcharges is causing financial stress for such projects.</p>

Comments:

Archives