Tuesday, Oct 21, 2014

Clear Rs 410 cr arrears to NTPC by July 15 or face disconnection: SC to BSES

The bench also slammed the BSES for "complicating" issues on paying power generation and transmission firms. (Source: Reuters photo) The bench also slammed the BSES for 'complicating' issues on paying power generation and transmission firms. (Source: Reuters photo)
Written by Utkarsh Anand | New Delhi | Posted: July 3, 2014 3:08 pm | Updated: July 3, 2014 4:08 pm

The Supreme Court on Thursday ordered the Reliance ADAG-owned discoms BSES to either clear the Rs 410-crore arrears payable to the National Thermal Power Corporation (NTPC) and other state generation and transmission companies by July 15 or face disconnection of supply.

A bench of led by Chief justice R M Lodha noted that as per its own statement, BSES Yamuna owed arrears of more than Rs 400 crore since January this year. The bench also ordered that the discom shall Co tinge to make payment for the current outstanding on a monthly basis in the future ti the legal issues are finally decided by it.

“We are directing you only to pay dues for this year.Power generation and transmission companies are no baniya shops. You must clear all dues since January 2014 if you want electricity,”  observed the court, adding issues relating to the recovery of past dues would be dealt separately.

The bench also slammed the BSES for “complicating” issues on paying power generation and transmission firms, pointing out they have been in appears for payments repeatedly.

The SC had on March 26 extended its interim order staying the operation of the NTPC notice on disconnection of supply to discoms. The court case signifies an escalating battle over who should shoulder the rising cost of power in the national capital. While the discoms have said they cannot pay the money they owe because the electricity tariffs are kept low and they suffer revenue shortfalls, the NTPC had threatened to snap supply in February over outstanding dues.

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