Discom overdues fall to Rs 740 billion in March

The outstanding overdues of discoms have declinedby over Rs 151,180 million, from Rs 896,280 million in February 2021 to Rs 745,100 million in March 2021, mainly due to the release of the second tranche of liquidity infusion package.

The power generators give a time limit 45 days to the discoms to pay bills for electricity supply, after which the outstanding dues become overdue,on whichthe generators charge penal interest in most cases. In May 2020, the central government had announced a Rs 900 billion liquidity infusion package for discoms, which wassubsequently increased to Rs 1,200billion and further to Rs 1,350billion.So far,Power Finance Corporation Limited (PFC) and REC Limited have together disbursed Rs 788,550 million under the said liquidity package.

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