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Private Power Investments at Risk

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

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.

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.

Dues as on date run into an estimated Rs 60,000 crore, half of it being towards independent power producers in Power Sector.
Other states not paying power generating companies on time include Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh and Punjab.

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.

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.

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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

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.

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.

Dues as on date run into an estimated Rs 60,000 crore, half of it being towards independent power producers in Power Sector.
Other states not paying power generating companies on time include Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh and Punjab.

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.

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.

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