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New discom norms: No power from other sources if genco dues pending

“If you keep genco dues (pending), then you will not be able to access power from other sources,” he said Tuesday, adding that the ministry was finalising a draft of rules to bring this change into effect which would be circulated to stakeholders, soon.

By: ENS Economic Bureau | New Delhi |
Updated: December 15, 2021 6:05:23 am
R K Singh

The Centre is set to notify rules that would prevent power distribution companies (discoms) with large outstanding dues to generation companies from sourcing power from other generation companies or power exchanges, Power Minister RK Singh said.

“If you keep genco dues (pending), then you will not be able to access power from other sources,” he said Tuesday, adding that the ministry was finalising a draft of rules to bring this change into effect which would be circulated to stakeholders, soon.

“Right now genco dues have gone up tremendously again … If you take the total gencos due, it’s Rs 1.15 lakh crore including state gencos. If you leave out the state gencos and talk about only IPPs (Independent Power Producers) and the central gencos it is about Rs 96,000 crore,” Singh told reporters on the sidelines of an event marking national energy conservation day. Singh said that certain discoms have been financing irresponsible behaviour by delaying payments to gencos and by borrowing from banks and financial institutions.

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