The APP in its letter to the minister also said that the state-run non-banking firms PFC and REC should be directed to release funds for payment of bills of IPPs, central generating stations and renewable energy projects together.
New Delhi: The Association of Power Producers (APP) has written to Union Power Minister R K Singh, alleging that Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) was demanding heavy discounts on pending dues from independent power producers (IPPs).
The APP in its letter to the minister also said that the state-run non-banking firms PFC and REC, which are implementing the centre’s liquidity infusion scheme, should be directed to release funds for payment of bills of IPPs, central generating stations and renewable energy projects together.
Earlier in May, the government had announced Rs 90,000 crore liquidity infusion scheme for discoms to pay off power generating firms (gencos) which was later increased to Rs 1.2 lakh crore.
In a letter shot off to the minister on Monday, the APP said, “Looking at the urgency, we request for early action….” and help in resolving this impasse.
“All the pending dues of central generating stations and IPPs, whether conventional or RE (renewable energy) generators, should be submitting together for disbursement under the liquidity window,” it has asked the power minister.
Earlier last month, the APP had informed the minister regarding the centre’s liquidity infusion scheme for DISCOMs, wherein, TANGEDCO was pressurising individual IPPs and trying to arm twist them into accepting huge discounts on the pending dues.
According to the letter, the IPPs supplying power to Tamil Nadu have been asked to provide 50 per cent discount on LPS (late payment surcharge) dues and 20 per cent discount on pending fixed charge amounts in order to get their dues under the liquidity infusion scheme.
TANGEDCO has asked for release of funds for central (power) generating stations on the grounds that the work of reconciliation of bills of IPPs is ongoing, it said.
The APP pleaded, “We would like to bring to your notice that this is an attempt by TANGEDCO to put further pressure on the IPPs to accede to their demands. In case PFC power finance corporation/REC Ltd agree for this differentiation, the IPPs, in view of their limited bargaining power with states, would come under heavy pressure to yield to the unreasonable demands being made by TANGEDCO.”
The body is of the view that this would set a very wrong precedent for prospective releases under the liquidity infusion window.
In this context you would recall similar attempts made by UP discoms earlier, the letter said. “In view of the above, we request you to instruct PFC/REC to not disburse funds in a piecemeal manner,” it said.
Source: PTI
