NEW DELHI-Noting that the country-wide total power dues have now crossed Rs 1 lakh crore, the Supreme Court on Monday warned that if state-owned power distribution companies (discoms) do not promptly clear their dues to power generators, the latter will shut shop.
This warning came from an SC bench while dealing with an application from Adani Power Maharashtra seeking at least 50% payment from Maharashtra State Electricity Distribution Corp Ltd and keeping in mind the large number of power generating companies moving the court against state-run discoms that have chronically defaulted in payment of outstandings. Directing MSEDCL to pay 50% of the outstanding amount to Adani Power within four weeks, the bench said, “Everyday the power generating companies supply electricity and you use it. Their money is with you. They cannot run their plants unless you pay up promptly. Otherwise, they will shut their plants and tomorrow there will be no electricity. ”
A similar order was passed by a bench on February 16 last year directing Uttar Haryana Bijli Vitran Nigam to pay up 50% of the outstanding Rs 1,100-odd crore.
Data by Union power ministry shows that Maharashtra tops the list of defaulters. The total current outstanding amount against Maharashtra is Rs 21,249 crore. Tamil Nadu is a close second with outstanding amount of Rs 21,132 crore, Rajasthan 12,393 crore, Uttar Pradesh 11,307 crore, Madhya Pradesh 6,964 crore, Karnataka 6,202 crore, Jharkhand 2,773 crore, Bihar 1,781 crore and Delhi 1,398 crore.
All northeastern states are shown to be promptly clearing their power dues with Arunachal registering the lowest outstanding of Rs 10 crore. Uttarakhand has an outstanding due of Rs 54 crore, Himachal Pradesh Rs 257 crore, Odisha Rs 338 crore, Chhattisgarh Rs 738 crore, West Bengal Rs 946 crore and Gujarat1,149 crore.
The serial defaulting by states makes even the revival of private power plants, facing insolvency proceedings, that much more difficult. Jhabua power plant is a case in point as it is yet to be paid Rs 822 crore as of January 1 by the discoms. As per the ministry of power, the overdue amount at the end of January was the maximum for IPPs, which cumulatively have not been paid Rs 55,377 crore against the electricity already supplied. The central public sector enterprises have not yet been paid Rs 23,511 crore of which Nuclear Power Corporation of India Ltd alone has an outstanding of over Rs 10,000 crore and NTPC nearly Rs 7,000 crore.