Under financial strain, the Reliance Infra-backed power distribution company, BSES Yamuna Power Ltd (BYPL), on Thursday informed the Delhi government that areas in Central and East Delhi may face eight to 10 hour power-cuts over the next few days.
According to BYPL, the company did not have enough resources to buy electricity from power generation companies such as NTPC and NHPC.
In a letter to Delhi’s Power Secretary Puneet Goel, BYPL has sought immediate financial assistance from the government to deal with the situation.
“The Company no longer has the financial ability or resources to pay the generating and transmission companies in full. Owing to the accumulated revenue gaps and in the light of other recent developments, all banks have stopped entertaining any proposals for additional credit (fund based or non-fund based) to the company, and have also categorically indicated that they will not be in a position to provide any flexibility whatsoever in repayment of existing borrowings,” the letter said.
Accumulated revenue arrears to banks amount to Rs 6,200 crore. The letter has been sent to the Union Power and Finance Ministries and Lieutenant Governor Najeeb Jung. “We urge the Delhi government, in the interests of millions of power consumers in East and Central Delhi, to take immediate action on our requests and ensure that there is no disruption or regulation of power… In the absence thereof, it unfortunately appears inevitable that there will be substantial load shedding of up to 8-10 hours, beginning February 1,” the letter stated.
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In their communication to the Delhi government, BYPL has also mentioned that banks were “alarmed” by the AAP-led government’s subsidy-led approach to power tariff. Soon after assuming power, Chief Minister Arvind Kejriwal had announced a 50 per cent cut in power tariff for up to 400 units of consumption and also ordered a CAG audit of the three discoms.
While announcing 50 per cent subsidy, the government had said it will adjust the subsidy component of BSES discoms against pending dues to power generation companies. The BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd supply power to around 70 per cent of Delhi.