Supreme Court sets deadline for BSES to pay arrears to NTPC

The amount refers to the dues between January and April this year.

Written by Utkarsh Anand | New Delhi | Published:May 6, 2014 4:21 pm
If BSES fails to pay by the end of May, the court said NTPC is entitled to cut the power it supplies to the distributor. If BSES fails to pay by the end of May, the court said NTPC is entitled to cut the power it supplies to the distributor.

The Supreme Court on Tuesday said that the NTPC may cut supplies to BSES in Delhi if the latter fails to clear arrears of dues for the current year by May 31.

The court ordered BSES – part of Anil Ambani’s Reliance Infrastructure Ltd,  to pay state-run NTPC Rs 700 crore by the end of May. The amount refers to the dues between January and April this year.

If BSES fails to pay by the end of May, the court said NTPC is entitled to cut the power it supplies to the distributor, overturning an earlier court order that NTPC should keep power flowing despite the outstanding bill.

BSES however pointed out its inability to pay due to lower tariffs and a revenue shortfall owing to a failure by the Delhi government and DERC to clear their arrears.

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  1. D
    dk
    May 6, 2014 at 12:39 pm
    The generating Companies are exploiting distributing companies by inflating their (Generating Co.) project costs and other expenditures. In tariff fixation to be chareged by Generating Cos, all these factors are taken into account and the distributing Cos are victimised,. The distributing Cos should tell the truth that they are insolvent and raise their arms.
    Reply
    1. I
      Insignia India
      May 6, 2014 at 12:52 pm
      Theft should be more or less zero (other than transmission and distribution losses) as there is huge vigilance and electricity meters are changed if they if there is any suion of any irregularity. Why do discoms have huge dues. Either they have followed no standard accounting policies or they have inflated cost to dupe the people.
      Reply
      1. M
        Mohan
        May 6, 2014 at 3:31 pm
        Where is Ak 49 ? He had promised cheap power to the people ? Now the people may not have adequate power !
        Reply