New Delhi: Central government banned 13 states, including Tamil Nadu, from buying and selling electricity in the power market due to non-payment of Rs 5,085 crore dues to power generation companies.
In this case, 6 states including Andhra Pradesh and Maharashtra have repaid the due amount immediately. Arrears of over Rs.4 thousand crores have been paid. Due to this, the balance for power generation companies has reduced to Rs.1,037 crore. It is noteworthy that the balance for the power generation companies decreased by 80 percent on the same day of the ban. Subsequently, states that have repaid the dues have been removed from the banned list.
Power generating companies across the country have set up a central power market to sell the power they generate and purchase the power they need from the external market.
To monitor and manage this market, the Union Ministry of Power has set up a Public Sector Undertaking called ‘Power System Operation Corporation’ (POSOCO).
13 states including Tamil Nadu, Andhra Pradesh, Maharashtra and Karnataka owed a total of Rs 5,085 crore to this company. In particular, the state of Telangana had a balance of Rs.1,380.96 crore and Tamil Nadu had a balance of Rs.926.11 crore. Also, Rajasthan Rs.500.66 crore, Jammu and Kashmir Rs.434.81 crore, Andhra Pradesh Rs.412.69 crore, Maharashtra Rs.381.66 crore, Karnataka Rs.355.20 crore, Madhya Pradesh Rs.229.11 crore, Jharkhand Rs.214.47 crore, Bihar Rs. 173.50 crore, Chhattisgarh Rs.27.49 crore, Manipur Rs.29.94 crore, Mizoram Rs.17.23 crore.
In this case, these 13 states have been banned from buying and selling electricity from the Central Power Market on Thursday.
Subsequently, 6 states namely Andhra Pradesh, Maharashtra, Jharkhand, Bihar, Manipur and Chhattisgarh have repaid the arrears. Thus, the ban on those states has now been lifted.
At the same time, the ban on engaging in e-commerce continues in 5 states including Madhya Pradesh, Jammu and Kashmir and Rajasthan. Of this, it is reported that Jammu and Kashmir has the maximum arrears of Rs.435 crores and Madhya Pradesh Rs.234 crores.
Apart from these arrears, the total arrears of power distribution companies have touched Rs.1 lakh crore. This is being solved according to the plan formulated by the central government.
The Telangana Power Corporation had informed that the case related to power supply is pending and that action should be taken in this matter. In this case, the ban on the states of Telangana and Karnataka has also been lifted.
After ban on electricity trading in 13 states in the Central Power Market, the price of one unit of electricity increased to Rs. 12 yesterday.
48 installments have been provided to facilitate payment of dues to power distribution companies. Also, no late fee has been levied on the outstanding amount by power generation companies.
In this regard, experts from the power sector say, “As the central government has already announced, the states have been banned from engaging in power trade. This will cause many disruptions soon.
Generally, power distribution companies purchase power from the open market to bridge the gap between demand and supply. A sudden decision by the central government will lead to power cuts in many parts of the states,” he said.
Explanation by Minister Senthilbalaji
Meanwhile, Tamil Nadu Electricity, Prohibition and Regulatory Affairs Minister V. Senthilbalaji, while talking to the media last night in Karur, said, “The arrears of power purchase of the Tamil Nadu government have been paid on the 4th. Of this, only Rs. 70 crore is outstanding. That amount will be paid within two days.
We have met the power requirement for two days without buying power from the Central Power Market. This is due to management skills. Also, wind and solar power are fully utilized. Power generation is also being increased,” he said.