Power ministry plans to reduce DISCOMs financial burden 

With the proposed scheme, DISCOMs will save an amount of ₹ 19,833 Cr on LPSC in the next 12 to 48 months

The inability of Discoms to pay dues impacts the entire value chain of the power sector. Considering this situation, the Ministry of Power is working on a scheme to mitigate the financial woes of the Distribution Companies (Discoms) that are unable to pay their dues.

Delay of payments by a Discom to a generating company adversely affects the cash flow of a generating company, which needs to make provisions for input supplies as coal, and for keeping adequate working capital for day-to-day operation of the power plant, etc. As per data available on PRAAPTI portal, the Discoms over dues (excluding disputed amounts and Late Payment Surcharge (LPSC)) were ₹ 1,00,018 Cr and the LPSC dues were ₹ 6,839 Cr.

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