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Reduced payment collection may loom in Blackouts : A matter of serious concern

Payment collection by major of Discoms across the country has substantially reduce by 80%, making Discoms unable to pay to generators for maintaining payment to coal and freight charges. Operating working capital has reduced making it difficult for Discoms to make salaries payment to their employees. Unpaid dues on Discoms rises to Rs. 90,000 Crores, a relief package from government could infuse some of the liquidity in the sector and meet waking capital requirements, but this may take another two to three weeks. There are even chances that cash-strapped private power plants, might forfeit bank guarantees or letters of credit of Discoms or start regulating power supply.