MoP invokes RBI pact to recover Rs 300.87 billion dues from states

The Ministry of Power (MoP) invoked tripartite agreements entered with states (Jharkhand, Karnataka and Tamil Nadu) and the Reserve Bank of India (RBI) for recovery of combined overdues of Rs 300. 87 billion.

As of August 31, 2021, Jharkhand had an outstanding of Rs 32.92 billion. The ministry recovered Rs 7.14 billion by invoking the tripartite agreement and has served notice for recovery of Rs 11.26 billion. Karnataka discoms had an outstanding of Rs 52.40 billion. Recovery notices have been issued for overdues of Rs 15.40 billion. Tamil Nadu discom had an outstanding of Rs 215.55 billion and notice for recovery of Rs 24.58 billion has been issued. Overdues of central generation companies have dropped by nearly a third to Rs 353.14 billion in August 2021, from Rs 497.80 billion a year after the power ministry invoked tripartite agreements with defaulting states and the RBI to recover outstanding amounts and asked central sector power plants to regulate supply to utilities that failed to pay their bills on time.

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