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The portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) has showed that total outstanding dues owed by electricity distribution companies (discoms) to power producers rose by 4 per cent year-on-year (Y-o-Y) to Rs 1,32,432 crore in June 2022 as compared to Rs 1,27,306 crore in June 2021. On a sequential basis, total dues in June increased from Rs 1,30,139 crore in May 2022. The PRAAPTI portal was launched in May 2018 to bring transparency in power purchase transactions between generators and discoms.

In June 2022, the total overdue amount, which was not cleared even after 45 days of grace period offered by generators, stood at Rs 1,15,128 crore as against Rs 1,04,095 crore in the same month a year ago. The overdue amount stood at Rs 1,07,636 crore in May 2022. Power producers give 45 days to discoms to clear bills for electricity supply. After that, outstanding dues become overdue and generators charge penal interest on that in most cases.

To give relief to power generation companies (gencos), the Centre enforced a payment security mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit for getting power supply. The Centre had also given some breathers to discoms for paying dues to gencos in view of the COVID-19-induced lockdown. The government had also waived penal charges for the late payment of dues. In May 2020, the government had announced a Rs 90,000-crore liquidity infusion for discoms under which these utilities got loans at economical rates from Power Finance Corporation (PFC) and REC. This was a government initiative to help gencos remain afloat.