Power producers write to Tangedco over 50 pc dues

CHENNAI: Association of Power Producers (APP) has written to the Tangedco to settle the balance 50 per cent dues at the earliest while assuring uninterrupted power supply considering impending elections.

According to the data available on the Union Power Ministry’s PRAAPTI (Payment ratification and Analysis in Power Procurement for bringing Transparency in Invoicing of generators) portal, the pending dues of Tangedco to conventional power generators at the end of January 2021 was approximately Rs 15,551 crore and for non-conventional sources it stood at 3,773 crore.

The APP which comprises of power producers having a power purchase agreement with Tangedco said that the power companies are waiting to receive the balance 50 per cent of payment to meet their various back-to-back obligations.

In the letter, APP director-general Ashok Khurana said, “As you would be aware, the entire thermal power industry is presently going through a very difficult and challenging phase where many generating companies are struggling to meet the obligations in view of pending realisation of long owed dues and from the discoms.”

“Given the impending elections in Tamil Nadu, our members are keen to ensure uninterrupted power supply to Tangedco without resorting to the invocation of letter of credit to avail payment or reporting the matter to POSOCO to avoid triggering undesirable consequences,” he said, appealing to the Tangedco to expedite disbursement of the dues at the earliest.

He also asked the discom to consider settling of the dues through alternate options like in the case of the renewable generators if availing tranche 2 from the Rural Electrification Corporation and Power Finance Corporation.

The first tranche payment of 50 per cent dues was paid in December last year.