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This is an archive article published on April 8, 2006

Bihar govt clears NTPC arrears

The Bihar government today cleared its arrears with the National Power Thermal Corporation amounting to around Rs 200 crore

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The Bihar government today cleared its arrears with the National Power Thermal Corporation NTPC amounting to around Rs 200 crore that would now enable the state to get 8220;unregulated8221; power supplies from the central power public sector undertaking.

Bihar Chief Minister Nitish Kumar today met Union Power Minister Sushil Kumar Shinde on this issue and pointed out that the state was facing severe power shortage after NTPC reduced its supplies to the state on the account of the backlog in payments. He also pointed out that all backlogs in payments up to March 31, 2006 had been cleared.

Power Ministry officials told The Indian Express that NTPC would stop regulating their supplies and would provide the state their due share from NTPC.

In fact, after paying the arrears, sources said that the CM also sought an additional 200 MW of power from the central pool, which would further ease the demand supply mismatch in the state.

After the meet, Nitish Kumar told reporters that Bihar8217;s power scenario was grim and was dependent on public sector undertakings especially NTPC. On account of this dependence on central supplies, he said the situation had worsened after NTPC reduced supplies. As against a demand of 1300 MW, the state is able to garner only 700 MW of power each day from all available sources.

 

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