NTPC warns UP of cutting supply over Rs 919 crore unpaid dues

State-owned power generation company NTPC Ltd has threatened to cut supply of 5,512 MW of power to Uttar Pradesh starting Friday if the state discom does not clear dues of Rs 919 crore that have been pending for more than 45 days, according to sources aware of developments. The Uttar Pradesh Power Corporation Ltd (UPPCL) has dues of Rs 2,873 crore payable to NTPC.

The notice by NTPC cited guidelines by Central Electricity Regulatory Commission (CERC) which provide that a power generating company has the right to discontinue supply to a defaulting entity in case of non-payment of outstanding dues. NTPC said “in spite of repeated follow ups at various levels in person as well as through our letters … UPPCL has not yet liquidated outstanding dues.”

NTPC noted that 100 per cent of the power supply allocated to UP would be cut initially for a period of 15 days, as per CERC regulations. Experts noted that such a large supply cut by NTPC would lead to blackouts in UP, but that such a cut was unlikely and the notice was aimed at putting pressure on the discom to clear dues.