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Green power: UP discom asked to pay Rs 7,245 crore

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powerThe quantity to be deposited by UPPCL contains Rs 1,459.3 crore for not assembly its RPO targets until FY21, whereas the stability quantity is in direction of assembly FY22 RPO obligations. That is for the primary time the UP utility has been requested to pay the RPO funds prematurely.

The Uttar Pradesh electrical energy regulator has requested state-run energy utility Uttar Pradesh Energy Company (UPPCL) to deposit Rs 7,244.7 crore in a regulatory fund by January 2022 to fulfill the renewable buy obligations (RPO) for FY22 and clear the previous dues. The transfer would give the much-needed cost assurance to photo voltaic, wind and hydel energy producers supplying electrical energy to the state.

The quantity to be deposited by UPPCL contains Rs 1,459.3 crore for not assembly its RPO targets until FY21, whereas the stability quantity is in direction of assembly FY22 RPO obligations. That is for the primary time the UP utility has been requested to pay the RPO funds prematurely.

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Uttar Pradesh’s ‘overdues’ — pending receivables of 45 days or extra — to energy producers stood at Rs 5,688 crore at FY21 finish. In March, the regulator had directed UPPCL to route all funds to renewable energy mills by way of the RPO regulatory fund to make sure these builders are paid on time. Greater than Rs 709 crore have already been paid to such builders within the first three months of the continued fiscal from the RPO fund.

Preserving in thoughts the liquidity circulation of the discoms, the regulator has allowed UPPCL to deposit the fund within the account in 10 equal instalments between July 2021 and January 2022. The required quantity is equal to about 10% of the state’s annual energy buy value, consultants identified.

For the cumulative shortfall of RPO targets, the deposit quantity has been calculated at Rs 1/unit for the electrical energy not procured by the state discoms until FY21. For the FY22 consumption estimate, it’s calculated at Rs 4.37/unit which is the typical energy buy value of the UP discoms. UPPCL may even must submit quarterly compliance studies on these deposits to the RPO fund, the regulator acknowledged. Because the RPO goal shortfall until FY21 was considerably increased for non-solar and hydel sectors in contrast with solar energy procurement, the regulator has directed UPPCL to “revisit their renewable energy buy technique”.

Stating that a lot decrease tariffs have been found in current photo voltaic auctions in different states, UP has lately cancelled the public sale for 184 megawatt (MW) of solar energy vegetation carried out in February, 2020 the place the tariff of Rs 3.17/unit was found. Of the 40,000 MW of put in photo voltaic capability within the nation, Uttar Pradesh homes round 1,700 MW.

Solar energy tariffs reached a file low of Rs 1.99/unit in December 2020 below auctions held by Photo voltaic Vitality Company of India (Seci) in Gujarat. In November 2020, a tariff of Rs 2/unit was found in Seci’s photo voltaic auctions for Rajasthan.

The Centre prescribed RPOs that mandates the discoms to buy a minimal share of renewable energy to fulfill their provide obligations as per the long-term RPO trajectory set by the Union energy ministry. “We’re pressuring the states to attain their RPO targets,” Union energy minister RK Singh lately mentioned at a press convention, including that “proper now penalties for RPO failures are gentle, within the Electrical energy Act amendments we’re proposing to extend the penalties”. “We have already got RPO targets, legitimate until 2022 and we will likely be extending the RPO targets to 2030,” Singh acknowledged.

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