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States' Total Outstanding Dues Down By Rs 24,680 Cr: Centre

The ministry said that the strict implementation of the LPS rules will bring back the financial viability of the power sector in the country and would attract investment to ensure reliable 24x7 electricity to consumers

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The Ministry of Power on Wednesday in a statement said that the total outstanding dues of states are reduced by Rs 24,680 crore to Rs 1,13,269 crore from Rs 1,37,949 core in June 2022.

The ministry said that this happened due to the timely payment of just four EMIs. 

For payment of EMI of Rs 24,680 crore, five states have taken a loan of Rs 16,812 crore from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) and eight states have opted to make their own arrangement.

The statement read, "Distribution companies are also paying their current dues in time to avoid regulations under the rule. Distribution companies have paid almost Rs 1,68,000 crore of current dues in the last five months."

Presently, only one distribution utility i.e. Jharkhand Bijli Vitran Nigam Limited (JBVNL) is under regulation for non-payment of current dues. Outstanding dues of distribution companies on the trigger date have been reduced to Rs 205 crore from Rs 5085 crore as of 18 August 2022.

The ministry said that the strict implementation of the Late Payment Surcharge (LPS) rules will bring back the financial viability of the power sector in the country and would attract investment to ensure reliable 24x7 electricity to consumers.


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