New Delhi: Dues of state-run power distribution companies to cash strapped power generators have increased by a third in April-January despite the government’s assurance that payments would be expedited.

As per data compiled by the Association of Power Producers, state-run power distribution companies (discoms) owed Rs 41,133 crore to private sector generators as on January 31, and many of these generators are struggling to keep their loan repayment schedule on track.

While these companies must pay state-run Coal India and Indian Railways in advance, they don’t receive payments from customers—the power distribution companies—on time.

Adding to the gloom is the possibility that the upcoming general election will push up power demand without any promise of recoveries.
 

“The alarming and progressive increase in receivables in payments and regulatory dues is not sustainable. Many projects that do not have financial resilience could potentially default and turn into non-performing assets. We need a resolutions at the earliest,” Ashok Khurana, director-general of industry body Association of Power Producers, told ET.

Of the pending receivables, Rs 17,140 crore is on account of regular energy bills, Rs 6,865 crore is the amount unpaid on account of change in law, or post adjudication. This also includes Rs 17,128 crore of dues that are stuck in litigation, according to data compiled by the association.

The association met power ministry officials yet again last week seeking intervention for clearance of dues to avoid assets turning into nonperforming assets. The Reserve Bank of India has listed 34 financially stressed power units, with loans totalling Rs 1,80,000 crore, at risk of turning into NPAs.

In the public sector, power generators had Rs 21,889 crore in receivables due as on end-November.

This is mostly on account of regular energy bills. “Two months’ delay by discoms has almost become a norm, but if it goes beyond that then it starts hurting us more. There are states which have delays of 5-6 months and then even ask for discounts on payment,” a top executive with a power company said.

Tata Power’s chief executive officer Praveer Sinha had recently told ET that his company faces problems from two states where Rs 200-300 crore is delayed beyond six month