MNRE cautions states to pay dues to RE generators

The Ministry of New and Renewable Energy (MNRE) has cautioned seven states that the renewable energy producers could approach the National Company Law Tribunal (NCLT) against the distribution companies owing to non-payment of dues. As per a recent report by the Central Electricity Authority (CEA), Andhra Pradesh had dues of Rs 25.09 billion to renewable energy generators as of July 31, 2019, followed by Tamil Nadu (Rs 24.13 billion), Telangana (Rs 15.8 billion), Karnataka (Rs 9.37 billion), Madhya Pradesh (Rs 8.32), Rajasthan (Rs 7.22 billion) and Maharashtra (Rs 6.29 billion). The total dues by all 17 states/utilities total Rs 97.35 billion. As a result, generators might default in making payments to the Indian Renewable Energy Development Agency and other financial institutions. The MNRE has asked the state distribution companies to clear dues at the earliest to save renewable energy assets from becoming non-performing assets.

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