PTI reported that the power trading business in the country, estimated to be worth about INR 20,000 crore, may take a hit on its profitability as payments are getting delayed from their financially weak customers.

The power traders are already seeing a sharp decline in their trading volumes in a market grappling with high business risks, the experts have warned.

Most of the power distribution companies or discoms are delaying the payment for electricity purchased from traders. This in turn is putting stress on the working capital of trading entities, as they have to make prompt payments to power generators.

Mr Tantra Narayan Thakur CMD of PTC India said that "We are witnessing a dip in power trading volume in this quarter. The poor financial health of discoms is ‘more of a concern’ as many of them are unable to pay for the power they have purchased or which they want to buy.”

There are around 40 power trading companies. Out of them, only about five or six are active. Besides PTC India, these include NTPC Vidyut Vyapar Nigam, National Energy Trading and Services, TATA Power Trading Company and Reliance Energy Trading.

PTC India alone is estimated to command over 40% of market share.

Going by the estimates, the turnover of Indian power trading market is worth about INR 20,000 crore and more than 50 billion units of electricity is traded annually.

(Sourced from PTI)