Companies

No payment defaults to NTPC: BSES Rajdhani

Siddhartha P. Saikia New Delhi | Updated on March 13, 2018

BSES Rajdhani Power Ltd (BRPL) on Wednesday said that it has no current default in payments to NTPC against power supplies.

Last Saturday, NTPC had issued notices to BSES Rajdhani Power Ltd threatening to regulate electricity supply from February 11.

Letter of credit

NTPC in its notice said that the discom has not been able to reinstate the payment security mechanism (commonly known as letter of credit or LC) within seven days in line with the norms in the power purchase agreement.

“For LCs, the company has requested NTPC to follow the consistent practice of the past 18 months and allow reinstatement in 30 days. NTPC is not at any risk of default for BSES Rajdhani payments. But NTPC has rejected the plea and sought LCs within 7 days,” said a BSES Rajdhani spokesperson.

The LC was enchased on January 31 after the discom failed to clear its dues to the power generating company. For BRPL, the shortfall in LC with effect from February 1 is ₹271.61 crore.

The discom has said that it has sought the co-operation of the Delhi Government and NTPC to resolve the matter in the interest of 19 lakh consumers.

On Monday, the Delhi Government had asked the Delhi Electricity Regulatory Commission to ensure that electricity supply is not interrupted in the Capital. It has also asked the regulator to cancel the discoms’ licence if they fail to provide electricity to consumers.

On Tuesday, Delhi Chief Minister Arvind Kejriwal had informed Lieutenant Governor of the State Najeeb Jung that if the private electricity distribution utilities (discoms) continue their inability to supply power, the regulator would suspend their licences and take over the management of the companies.

Siddhartha.s@thehindu.co.in

Published on February 05, 2014

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