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    HomeBusinessPower Min urges states to direct utilities to clear dues to gencos,...

    Power Min urges states to direct utilities to clear dues to gencos, coal firms

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    Union Power Secretary Alok Kumar has shot off letters to chief secretaries of states including Uttar Pradesh, Tamil Nadu, Maharashtra, Rajasthan, Madhya Pradesh and Union Territory of Jammu and Kashmir in this regard.

    The Ministry of Power has urged certain states, including Uttar Pradesh, Tamil Nadu and Maharashtra, to direct their utilities to clear total outstanding dues towards generating firms (gencos) and coal companies as failing to do so might affect electricity supply.

    Union Power Secretary Alok Kumar has shot off letters to chief secretaries of states including Uttar Pradesh, Tamil Nadu, Maharashtra, Rajasthan, Madhya Pradesh and Union Territory of Jammu and Kashmir in this regard.

    The letter, a copy of which was reviewed by PTI, urged the chief secretaries to direct the utilities in their states to immediately clear the outstanding dues of gencos and coal companies, failing which the electricity supply to their states might get severely affected.

    Kumar highlighted that lack of adherence to basic payment discipline by the utilities is not only causing supply side problems in generation of electricity, but also adversely affecting new investment in the sector.

    He stated that public utilities have higher responsibility to be ideal paymasters and upholders of contract laws of the country, adding that repeated indiscretion on part of the utilities goes against the very essence of these basic responsibilities.

    If the utilities continue to renounce their responsibilities for timely payments to their creditors, and do not wipe out their past and current dues on an urgent basis, this will have a perilous effect on the power supply, he stated.

    Inability of the utilities to pay for legitimate dues against electricity dispatched and the coal received is increasing the electricity supply side concerns to unprecedented levels, he added.

    The pending dues of gencos and Coal India Ltd (CIL) have been a matter of grave concern for quite some time. This is posing a threat to reliable power supply, the secretary noted.

    According to the letters, Uttar Pradesh utilities owed Rs 9,372.49 crore to gencos and Rs 319.82 crore to CIL.
    Tamil Nadu utilities owed Rs 20,842.53 crore to gencos and Rs 729.60 crore to CIL. Maharashtra utilities’ dues stood at Rs 18,014.54 crore towards gencos and Rs 2,573.19 crore for CIL.

    Rajasthan utilities owed Rs 11,176.38 crore to gencos and Rs 307.86 crore to CIL.
    Madhya Pradesh utilities owed Rs 5,030.19 crore to gencos and Rs 256.04 crore to CIL.
    The Union Territory of Jammu and Kashmir’s utilities owed Rs 7,275.12 crore to gencos.

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