Private sector power companies have sought an urgent resolution from power ministry to the delays in payment by the state-owned distribution companies (discoms), which will help prevent the massive loan defaults by the producers, reported Live Mint, citing sources.
The private power firms, in a meeting with the ministry and lenders, have requested that discoms be granted loans to pay off their dues to the company, sources aware of the matter told Mint, adding that delays in payments by discoms in some cases are over 500 days.
State-owned discoms owe about Rs 40,000 crore to power producers, out of which Rs 18,500 crore is owed to the private sector producers, Ashok Khurana, director general, Association of Power Producers, said in a phone interview to Mint.
“The ‘change in law’ dues (on account of pass-through of coal costs) amount to ₹7,000 crore; dues stuck in litigation is another ₹17,000 crore. Unless we want these operational healthy assets to also become NPAs, we suggest that everybody involved find a solution. If we don’t, by the end of March, bank loans to several power companies will become NPAs,” he was quoted as saying.