Pay any outstanding power bills: PM Modi urges states for swift action
The Prime Minister urged that the debts owed by different states in the power industry be paid off as soon as possible during the inauguration of several NTPC green energy projects.
FollowThe state governments have been urged by Prime Minister Narendra Modi to pay electricity distribution companies  and producing businesses what they owe. According to information from the power ministry, the states and union territories (UTs) owed the gencos more over Rs 1 trillion as of March 31, 2022. A total of Rs. 1.3 trillion in debt is owed to Discoms.
The delayed payments cause the electrical providers to lose money. The Prime Minister urged that the debts owed by different states in the power industry be paid off as soon as possible during the inauguration of several NTPC green energy projects.
While the central government is moving forward with the amendment of the electricity law that ensures competition in the electricity supply sector, the prime minister suggested that the state governments should urgently intervene to resolve the financial crisis of the various electricity distribution boards and generation and distribution companies in the states.
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According to the Centre, a serious crisis in the electrical sector is being brought on by dues that must be paid by distribution firms to power producing businesses and by various governments to distribution companies.Â
At the Chief Secretaries meeting last month, the Prime Minister had also made this point. The largest defaulter, Telangana, owes Rs 11,935 crore. The amount that various ministries are expected to pay to the KSEB in Kerala is estimated by the national government to be Rs 1278 crore.
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Apart from Telangana, the states with the most arrears are Maharashtra, Andhra Pradesh, and Tamil Nadu. The water authority in Kerala has the most outstanding debts owed to KSEB by several departments. The state government is now in charge of this, and payments are made in instalments. Institutions in the public sector, businesses, and closed government entities all charge fees. The scenario is the same in other states. For delivering free power to diverse regions, the majority of states owe electricity distribution firms money.
