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Substantial reduction in Discom’s receivables raises concern over maintaining no blackout

Discoms are scribbling in payment collection against the power bills. Discoms have experienced only 25% collection of billed power, this poses a serious risk of blackouts. Collection received is barely enough to meet salary payment of their employee leaving no scope for payments to power plants for coal and freight.

Centre will extend help for bailout package that would render total dues of Discoms in tune of Rs. 90,000 Crs. While, bailout package may take another 2-3 weeks  for fund raising and implementation.

Lockdown extension will further reduce collection payments as high end consumers like Industrial and commercial censures still are non-operative. Some of the power plants may also experience forfeiting their bank guarantee. Also reduction in payment by Discoms will result in generation plants running out of cash amid lockdown