India Considers Prepaid Power as $5.7 Billion of Unpaid Dues Pile-Up
- Govt sets up panel to examine prepaid power sales to discoms
- Delayed payments stressing generators’ working capital cycle
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India’s power retailers may need to start paying in advance for their electricity purchase in a bid to ease financial stress at generators.
Concerned over delayed payments to generators, the federal power ministry has formed a panel to examine if distribution companies should pay generators in advance for electricity purchases, according to a power ministry document reviewed by Bloomberg. A power ministry spokesman confirmed the development.