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The cash-strapped Damodar Valley Corporation (DVC) has reportedly sought the intervention of the Union Government in recovering Rs 2,800 crore it claims as due from the Jharkhand State Electricity Board (JSEB), according to sources.
The Centre had earlier recovered approximately Rs 800 crore worth of dues of DVC through Plan fund settlement.
The move is part of the corporation's plea to the Centre for Rs 5,000-crore cash infusion, including equity infusion, for smooth implementation of 4,700 MW thermal power capacity addition programme in Bengal and Jharkhand at an estimated cost of over Rs 20,000 crore.
Jharkhand (along with the Centre and the West Bengal Government) is a stakeholder in the statutory organisation. Apart from power generation, the corporation is entrusted with wide ranging non-commercial responsibilities including flood control, canal irrigation, social development and others in the Damodar river valley area.
DVC official sources confirmed that JSEB has defaulted in paying Rs 2,800 crore against power purchase from 2002 to December 2010. The amount includes approximately Rs 1,900 crore payable on account of power purchase and Rs 900 crore as delayed payment surcharge.
According to DVC, the state utility is currently defaulting at the rate of Rs 30 crore a month against power purchases worth Rs 80 crore at the Central Electricity Regulatory Commission's (CERC) approved tariff of Rs 2.94 per unit.
The supplies are made against letter of credit worth Rs 50 crore.
When contacted, Mr Abhay Kumar Sinha, member finance of JSEB, contested DVC's claims. “As per our assessment, JSEB owes not more than Rs 300 crore to DVC,” he said. However, Mr Singh confirmed that the “Union ministry of power will begin reconciliation process (for recovery of dues of DVC from JSEB) in March”.
DVC has already added approximately 750 MW of capacity and is on the verge of adding another 1,500 MW in this fiscal. The remaining 2,450 MW capacity is now expected to be on stream in early years of Plan-XII.
In addition the corporation's joint venture with Tata Power is slated to commission 525 MW thermal power capacity at Maithon in this fiscal.
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