Central government bars certain states from participating in power exchange trading

Reportedly, the Union government had barred 27 discoms from 13 states from buying or selling electricity on power exchanges until they pay their current bills from power plants, giving a strong message that they will have to pay the accumulated dues and clear regular bills on time.

Out of the 13 states that were restricted, the bidding restriction was removed for six states. These include Chhattisgarh, Maharashtra, Andhra Pradesh, Bihar, Jharkhand and Manipur. These states were allowed to trade electricity after they claimed no outstanding or disputed matters. Later, restrictions on Karnataka and Telangana were also removed. Five states, including Madhya Pradesh, Jammu & Kashmir, Mizoram, Tamil Nadu and Rajasthan, remained suspended from trading on power exchanges as per the latest available information till Friday. The outstanding current dues of states and union territories to developers dropped 80 per cent within a day of the electricity grid operator barring defaulting distribution companies from power exchanges for short-term purchases or sales. They fell to Rs 10.37 billion on Friday from Rs 51 billion after some paid up while others disputed their dues.

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