PFC offers funding facility to discoms for timely payments of outstanding dues

Power Finance Corporation (PFC) has introduced a facility for discoms to avail funds for paying their dues to power generation companies, to help in avoiding late payment charges as well as earn rebates for timely payments.

PFC’s credit facility would be available to discoms under the policy for offering revolving bill payment facility (RBPF) to discoms/gedcos for ensuring early payment of dues to gencos/ transcos/ trading companies. As per CERC regulations, a rebate of 1.5 per cent is extended on payment of power purchase dues up to 5 days of raising the invoice by genco/ transco, and thereafter, 1 per cent is extended for payment from 6th to 30th day. Further, a LPSC (late payment surcharge) at the rate of 1.5 per cent per month is charged in case the payment is delayed beyond 45 days. As per Payment Ratification and Analysis in Power procurement for bringing Transparency in Invoicing of generators portal, the outstanding dues of discoms as of August stood at Rs 1,320 billion compared to nearly Rs 970 billion in the same month last year.

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