Power producers’ total dues owed by distribution firms rose over 37 per cent year-on-year to ₹1.33 lakh crore in August 2020, reflecting stress in the sector.

Distribution companies (discoms) owed a total of ₹96,963 crore to power generation firms in August 2019, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators). The portal was launched in May 2018 to bring in transparency in power purchase transactions between the generators and discoms.

In August 2020, the total overdue amount, which was not cleared even after 45 days of grace period offered by generators, stood at ₹1,20,439 crore, as against ₹78,646 crore in the year-ago period.

Outstanding dues

According to the latest data on the portal, total outstanding dues in August increased on month-on-month basis as well. In July 2020, total outstanding dues of discoms stood at ₹1,30,452 crore. The overdue amount in

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