Two Discoms owe ₹ 1,400 cr. to solar power units

Producers unable to service debt taken from banks

The two power distribution companies (Discoms) of Telangna owe a staggering ₹ 1,400 crore to private solar power developers for over an year.

The amount was payable by Discoms to the solar units for supply of 3,500 MW of power. But, the inability of Discoms to clear the dues in time has purchased problems for solar power developers as they were unable to service the debt to banks. The developers had borrowed bank loans to set up power plants, sources said.

They added that the Discoms purchased 65,000 million units per annum of power from various sources, including 4,600 million units of solar power.

Summer demand

The solar power was particularly useful to Discoms during summer when power demand was high but the power utilities were unable to meet the same. Therefore, the Discoms resorted to purchase of power from solar for daytime requirements. The unit cost of power for purchase by Discoms worked out to ₹ 5.76. Sources said the private solar power developers were attracted by the solar power policy of the State government and set up plants borrowing bank loans.

Govt. tender

The government floated tenders for 5,000 MW after the policy was announced but received bids for only 3,500 MW which was executed. The government did not clear the bills for generation after July last year, they added. The developers association has appealed to the Chief Secretary S.K. Joshi to clear the dues but to no avail. The existence of the plants was difficult unless the payments were cleared, it said in a memorandum to Mr. Joshi.

Why you should pay for quality journalism - Click to know more

Related Topics
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Feb 23, 2020 10:56:55 AM |

Next Story