Dis­coms Pay Off Rs 10,000-cr Dues

STATE POWER COS’ LIQ­UID­ITY GREW ON IS­SUE OF `1 LAKH CR OF UDAY BONDS

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Power dis­tri­bu­tion com­pa­nies, mainly in Jhark­hand and Jammu & Kash­mir, set­tled dues of about `10,000 crore to cen­tral gen­er­a­tion com­pa­nies in April, bring­ing down to­tal out­stand­ing amount by 45% from `22,000 crore in March.

An­a­lysts said dis­tri­bu­tion com­pa­nies’ liq­uid­ity in­creased after about `1 lakh crore of bonds were is­sued un­der the Ujwal Dis­com As­sur­ance Yo­jana scheme, which en­abled some states to pay off amounts owed to power sup­pli­ers. UDAY scheme was ap­proved by the Cabi­net in Novem­ber to help the fi­nan­cial turn­around of power dis­tri­bu­tion com­pa­nies.

Power pro­duc­ers Damodar Val­ley Cor­po­ra­tion, NHPC and SJVNL were the largest ben­e­fi­cia­ries of UDAY. Jhark­hand and Jammu & Kash­mir paid about `9,000 crore to these gen­er­at­ing com­pa­nies. These states have is­sued UDAY bonds of `6,136 crore and `2,140 crore, re­spec­tively.

“We had about `8,000 crore of dues from Jhark­hand State Elec­tric­ity Board. This in­cluded `4,500 crore as prin­ci­pal out­stand­ing and `3,500 crore as sur­charge. After they had is­sued UDAY bonds, their fi­nan­cial po­si­tion im­proved, al­low­ing them to set­tle our dues,” said an of­fi­cial from DVC.

Kolkata-based DVC, which is present in Jhark­hand and West Ben­gal, has been un­der fi­nan­cial stress due to huge pay­ment ar­rears by con­sumers. Hav­ing re­ceived out­stand­ing amount, DVC'S fi­nan­cial po­si­tion is ex­pected to im­prove. “Jammu & Kash­mir has also been able to set­tle dues that were long pend­ing. They set­tled a large part of their dues with NHPC,” a se­nior an­a­lyst with one of the Big Four con­sult­ing com­pa­nies said.

How­ever, states that is­sued largest vol­ume of UDAY bonds, in­clud­ing Ra­jasthan, Ut­tar Pradesh, Pun­jab and Haryana, did not see much change in out­stand­ing po­si­tions over past few months.“we ex­pect to see dues of gen­er­at­ing sta­tions to de­cline and fi­nan­cial po­si­tions of dis­coms to grad­u­ally im­prove from this year on­ward. As the ef­fect of UDAY come into play, dues are ex­pected to re­duce fur­ther,“the an­a­lyst said.

POWER PRO­DUC­ERS DAMODAR VAL­LEY COR­PO­RA­TION, NHPC AND SJVNL WERE THE LARGEST BEN­E­FI­CIA­RIES OF UDAY

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