Power Grid Branch Calls for Timely Payment of Transmission Charges by Tangedco

Other central centrals also report unpaid dues, letter of credit issues

Other central centrals also report unpaid dues, letter of credit issues

The Central Transmission Utility of India Limited (CTUIL), a branch of Power Grid Corporation of India Limited, raised the issue of non-payment of dues by Tangedco for transmission charges.

In his recent letter to the Southern Regional Power Committee (SRPC), under the aegis of the Central Electricity Authority, he highlighted the outstanding dues of Southern Region distribution companies totaling around ₹1,670.61 crore as of July 1 and requested the payment of contributions in time.

He pointed out that Tangedco has unpaid dues of ₹1,203.74 crore, of which ₹928.03 crore has already crossed 45 days. An amount of ₹219.86 crore is disputed by Tangedco. Of this amount, ₹28.93 crore relates to the January 2021 billing, for which Tangedco moved the Madras High Court. No suspension having been granted to date, the CTUIL requested the release of payment.

He also pointed out that Tangedco had withheld ₹190.93 crore until April 2022 for long-term access transmission fee waiver to derive its share of electricity from Madras nuclear power plant and thermal power plants in Madras. NLC.

CTUIL asked Tangedco to release the withheld amount and said the non-payment impacts the performance of all licensees using the interstate transmission network.

Meanwhile, other central power plants also highlighted pending distribution company assessments in the Southern region as well as letter of credit issues.

Nuclear Power Corporation of India Ltd (NPCIL), which manages the Kundankulam nuclear power project, said that as of May 2022, outstanding contributions from State Electricity Boards (SEBs) exceeding 60 days amounted to 2,381, ₹15 crore, of which Tangedco accounted for ₹2,250.20 crore.

He noted that the non-receipt of energy fees from SEBs hampered day-to-day operations as well as working capital management, and that he was unable to clear liabilities in a timely manner. The distribution companies (discoms) have not revised the terms and conditions of the letters of credit.

Similarly, NPCIL said Kaiga powerhouses had unpaid dues of ₹997.27 crore from discoms, including ₹492.77 crore from Tangedco.

NLC Tamil Nadu Power Limited also reported the issue of non-review of letter of credit and non-payment of dues totaling ₹557.42 crore by discoms, of which ₹221.40 crore by Tangedco.

Tangedco communicated its plan of liquidation to regulate the contributions, according to the diagram announced by the Center, but the other discoms did not communicate their plan yet.

In accordance with the program announced by the Center, nightclubs will benefit from a one-time relaxation in which the unpaid amount, including principal and late payment surcharge, will be frozen without further imposition of additional surcharge. Discoms have the option to pay the outstanding amount in up to 48 installments.

A late payment surcharge is levied on a discom’s unpaid payment to a production company at the base rate (indexed to SBI’s marginal cost of loan rate). It is applicable for the period of default at the base rate for the first month of default and increases by 0.5% for each successive month of delay, subject to a maximum of 3% above the base rate at any moment.

Tamil Nadu is expected to save over ₹4,500 crore through the scheme.

However, in the event of late payment of a deposit by a discotheque, the late payment will be due on the entirety of the contribution remaining to be paid, which otherwise is exempt.


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Elaine R. Knight