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Ministry of Power has issued rules regarding clearance of pending bills and payment of late payment surcharge by DISCOMs to power generators and transmission companies.
| Default trigger date | 30 days after due date or 75 days after presentation of bill, wherever is later; or |
| Expiry of payment security mechanism | |
| Base rate for late payment surcharge | LPS shall be paid at base rate equivalent to SBI 1-year MCLR + 500 basis points. |
| Base rate shall increase by 50 basis points for every month of delay in payment, subject to maximum of base rate + 300 basis points. | |
| Payment of existing overdues | DISCOMs can pay outstanding overdues through EMIs as per following schedule: |
| < INR 5 billion: 12 months | |
| INR 5-10 billion: 20 months | |
| INR 10-20 billion: 28 months | |
| INR 20-40 billion: 34 months | |
| INR 40-100 billion: 40 months | |
| > INR 100 billion: 48 months | |
| Limiting supply to DISCOMs | After default trigger date, generators may stop supplying power to DISCOMs and sell it at power exchange to recover overdues. |
| Power supply through inter-state PPAs would be reduced in case of non-payment of overdues after default trigger date. | |
| Nodal agency | PFC; to submit weekly monitoring reports on overdues to MOP |
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