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MAY 05 2016

Scorched Delhi in trouble? NTPC asks discos to clear dues or face power cuts

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 05th MAY 2016

In what could worsen Delhi’s scorching summer, state-run NTPC has issued notices to Reliance Infra-run power distribution companies, saying that power supply to them would be regulated from May 11 if the firms do not clear Rs 1,300 crore of combined dues.

 “The allocation letter issued by the government of India provides that in case of default in payment and non-maintenance of letter of credit, NTPC has the right to shut off or restrict power supply from power station and reallocate power,” NTPC said in its notice to BSES Yamuna and BSES Rajdhani.

The proposed regulation of power would be implemented with effect from midnight of May 10. The thermal generator has also said it would supply the excess power resulting from regulating supply to any region that requests for it.

 The notices refer to several reminders sent to the discoms regarding liquidation of outstanding bills. It said BSES firms have repeatedly defaulted on payments beyond the due date. Additionally, BSES firms have failed to maintain LC for the requisite amount and to extend the validity of the same for the period as per power purchase agreements (PPAs), NTPC said in its regulation notice to the discoms. NTPC has been supplying power to BRPL and BYPL since unbundling and privatisation of DVB.

 Meanwhile, BSES said it is under huge financial stress due to non-liquidation of regulatory assets estimated to be over `16,000 crore as on March 31, 2016. “The payment of dues to power utilities by BSES discoms is sub judice in the Supreme Court. The judgment in the matter is reserved since February 2015. We are awaiting the judgment, which will clear the path for recovery/liquidation of regulatory assets,” it said.


Delhi BSES Rajdhani Power Ltd BSES Yamuna Power Ltd Reliance Infra Distribution Companies Letter of Credit NTPC Ltd Power Distribution Power India

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