No renewable energy investor will come if energy bills not paid, stringent action needed, says R K Singh – EQ Mag Pro
Power Minister R K Singh on Tuesday expressed concern over rising dues of renewable energy (RE) producers that have not been paid by discoms, saying no investment will come in the sector if investors find power bills are not being cleared.
Taking to reporters on the sidelines of National Energy Conservation Day Function, on rising dues of RE producers from discoms, the minister said, “It is a matter of worry because the quantum is just Rs 15,000 crore or Rs 16,000 crore. But it amounts to 11-month of their billing.”
A latest status report of the power minister finalised on November 29, 2021 showed that the total overdue amount of discoms towards renewable energy (RE) producers stood at Rs 19,013 crore as on October 31, 2021, which constitutes 20 per cent of total amount of overdues of Rs 93,906 crore.
The overdues of discoms towards RE producers stood at Rs 14,741 crore in January this year.
The report showed that the amount of Rs 19,013 crore overdues toward RE producers was 11.8 times of their average monthly billing.
Andhra Pradesh utilities owe the maximum amount of the overdues towards RE producers at Rs 6,279 crore followed by Tamil Nadu at Rs 3,215 crore and Telangana at Rs 2,159 crore.
The minister explained, “They (RE producers) are very important in the context of COP26 (India’s target of 500GW RE by 2030). No investment will come if they find that power is not paid for. That is compelling us to take more stringent actions to make sure that energy bills are paid. If we don’t do that no investment will come for RE..then how would I achieve 500GW (RE by 2030) But I cannot have a rule for RE only.”
Thus, the power ministry is embarking upon a robust payment security mechanism for the power producers so that energy bills are paid well in time.
Source: PTI
