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Web Exclusive | January 2013

NTPC warns Rajasthan to snap power supply

NTPC has recently threatened Rajasthan to snap supply to penalise the State for defaulting on payment of Rs 367 crore dues and non-compliance of collateral arrangements. So consumers in Rajasthan may face blackouts.

A senior NTPC official said three distribution companies - Ajmer Vidyut Vitran Nigam, Jaipur Vidyut Vitran Nigam and Jodhpur Vidyut Vitran Nigam - owe about Rs 95 crore to the power generating company in addition to a recent bill raised for Rs 272 crore. The Rajasthan companies also did not renew Rs 187.95 crore security with NTPC after December 31, 2012.

In a regulatory notice to the three distribution companies NTPC has said it would either curb the supply of 1,258 mw or regulate it from the midnight of January 13, 2013. The allocation letters issued by government of India says in case of default in payment, NTPC has the right to shut off or restrict power supply from power stations, the notice said.

Weak financial health of State-owned power distribution companies including Rajasthan is a concern as the firms are unable to pay their electricity bills and meet debt obligations towards banks.

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