IPPs seek liquidity window to clear dues
Want special line of credit by Power Finance Corporation to discoms
- Reeling under a liquidity crunch, independent power producers (IPPs) in the country are seeking liquidity window through a special line of credit by the Power Finance Corporation to power distribution companies (discoms) to clear their outstanding power bills of ₹50,000 crore up to March 31, 2020.
- This, since the IPPs do not have funds to buy coal or pay freight charges.
- Once the coal stocks at the plants deplete, they may have no other option but to shut down the plant till their liquidity situation improves.
- The Association of Power Producers (APP) has written to the government seeking the liquidity window through a special line of credit by PFC/REC for discoms to clear their outstanding power bills of around ₹50,000 crore up to March 3, 2020.
- This comes at a time when the revenue collection by discoms has fallen by as much as 80%, and payments to generators have also crashed correspondingly due to the adverse impact of the COVID-19 pandemic.