In Delhi, power producer NTPC will suspend supply to power distribution company BSES for non-payment of dues. The move will severely impact supply of power in East, West and South Delhi. The NTPC had given BSES until February 10 to pay its dues, failing which power supply would be suspended from midnight of February 13.
The NTPC has alleged that BYPL failed to replenish the Letter of Credit (LC) for the amount of Rs 155.19 crore and that as per power purchase agreement in the event of non-availability or shortfall in LC, the NTPC has the right to regulate and sell BYPL’s allocation of power to other parties.
The BYPL gets about 434 mw of power from the NTPC. The BRPL, which gets about 127 mw of power from the NTPC, too has failed to replenish the LC for the amount of Rs 271.61 crore and has been issued the notice. This is not the first time that the NTPC has threatened to suspend supply to Delhi discoms for non-payment of dues. A similar notice was issued in December 2011. For their part, the discoms said they have apprised the government of the situation and are making arrangements to meet the demand.
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