The non-payment of dues for electricity purchased from NTPC Limited would cost dearly for Yogi Adityanath-led Uttar Pradesh government with the power generating firm threatening to snap supply from Thursday midnight, sources in the know of the development said.

NTPC has already served a notice to Uttar Pradesh Power Corporation Limited informing the State government undertaking about its decision to regulate the supply of 5,512 MW power from its generating stations as the latter has not cleared dues which are outstanding for more than 45 days, the sources said.

NTPC cited CERC guidelines on regulation of power supply, which say that a generating company has the right to discontinue/regulate power supply to a defaulting entity in case of non-payment of outstanding dues or non-maintenance of Letter of Credit or any other payment security mechanism. NTPC has asked UPPCL to pay the outstanding dues.

Against the bills raised for electricity supplied from NTPC stations to UPPCL, about ₹2,873 crore is yet to be paid by UPPCL, out of which nearly ₹919 crore has been outstanding for more than 45 days, the sources said.