NTPC may cut supply if discoms don’t pay dueshttps://indianexpress.com/article/business/business-others/ntpc-may-cut-supply-if-discoms-dont-pay-dues-2784941/

NTPC may cut supply if discoms don’t pay dues

The proposed regulation of power would be implemented with effect from midnight of May 10.

NTPC, NTPC, Reliance Infra, Reliance power distribution, BSES Yamuna, BSES Rajdhani, India news
NTPC also said it would supply the excess power resulting from regulating supply to any region that requests for it. (Reuters)

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.

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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. FE

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