A panel created by the Indian power ministry will submit by the end of February a report examining whether distribution companies should pay generators in advance. Indian electricity producers lack funds due to unpaid bills from distribution companies. This prevents them from repaying their debts and forces them to take out loans to secure working capital. In November 2018, the owed sum reached INR412bn ($5.8bn), rising 29% from the previous year. 2:48 of the power supplied by electricity retailers is unpaid because of leaks in the transmission network, theft or wrong billing and lack of collection.
A panel created by the Indian power ministry will submit by the end of February a report examining whether distribution companies should pay generators in advance. Indian electricity producers lack funds due to unpaid bills from distribution companies. This prevents them from repaying their debts and forces them to take out loans to secure working capital. In November 2018, the owed sum reached INR412bn ($5.8bn), rising 29% from the previous year. About a fifth of the power supplied by electricity retailers is unpaid because of leaks in the transmission network, theft or wrong billing and lack of collection.