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.