The total dues of power producers to distribution companies rose around 37 per cent to Rs 69,558 crore in September 2019 over the same month last year, reflecting stress in the sector.

Distribution companies owed a total of Rs 50,583 crore to power generation companies in September 2018, according to web portal PRAAPTI (Payment Ratification and Analysis in Power procurement for Bringing Transparency in Invoicing of generators).

The portal was launched in May 2018 to bring transparency in power purchase transactions between generators and discoms (distribution companies).

In September this year, the total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at Rs 52,408 crore against Rs 34,658 crore in the same month last year.

Power producers give discoms 60 days to pay bills for the supply of electricity. After that, the dues become overdue and generators charge a penal interest on that in most cases.

In order to give relief to power generation companies, the Centre has enforced a payment security mechanism from August 1. Under this mechanism, discoms are required to open letters of credit for getting power supply.

Data on the portal indicate that the outstanding as well as overdue amount have decreased over the preceding month. In August 2019, the total outstanding on discoms was Rs 80,087 crore, while the total overdue amount was Rs 60,935 crore. The August figures of dues and overdues have been revised upwards from Rs 78,020 crore and Rs 59,532 crore provisional numbers released last month.