How payment security mechanism works


Counterparty risk from delays or defaults in payments by distribution companies (discoms) is a critical concern for power producers in India. With 88% of power offtakes tied to long-term agreements with discoms, the sector faces challenges due to inefficiencies like transmission losses, poor collection, and tariff controls.

Visit https://www.ceew.in/cef/quick-reads/explains/how-payment-security-mechanism-works
How payment security mechanism works Counterparty risk from delays or defaults in payments by distribution companies (discoms) is a critical concern for power producers in India. With 88% of power offtakes tied to long-term agreements with discoms, the sector faces challenges due to inefficiencies like transmission losses, poor collection, and tariff controls. Visit https://www.ceew.in/cef/quick-reads/explains/how-payment-security-mechanism-works
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