Tamil Nadu government puts eligibility criteria for payment of pending power dues to gencos

The Tamil Nadu government has asked all electricity distribution and generation companies to reduce late payment fee and fixed charges to be eligible for payment of pending dues.

The state was recently sanctioned Rs 310 billion under the centre’s Atmanirbhar Bharat liquidity package. Tamil Nadu is second state trying to negotiate with power plants for disbursal of funds. Earlier, Uttar Pradesh had proposed to conduct unique auctions among power plants under which companies that offered higher rebates in dues will get faster repayment. The Ministry of Power had directed the disbursements of funds to generators in a non-discriminatory manner in proportion to their outstanding dues.

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