NTPC's subsidiary Aravali Power Company Ltd has warned Anil Ambani-promoted electricity distribution utilities BSES Rajdhani and BSES Yamuna of cutting 445 MW of power supply from September 5 for non payment of dues.
"Aravali Power Company Ltd (APCL), Jhajjar has been supplying power to the BSES discoms since March 5, 2011...The payments by the BSES discoms had become irregular for sometime...Today, the outstanding amounts are ₹961.58 crore," NTPC said in a statement. The company said that despite directions from the Supreme Court, the BSES electricity distribution utilities have failed to clear the dues.
A similar notice of regulation of power supply was given by NTPC in May this year. However, after both BSES Rajdhani and BSES Yamuna gave a plan for liquidation of outstanding dues in front of the Delhi Electricity Regulatory Commission, the notice for regulation of power supply was withdrawn.
"APCPL has to pay in advance to its fuel suppliers which constitute about 70-80 per cent of its monthly energy bills. If the above situation continues, APCPL being a single power station company is unable to meet any of its commitments inter alia including payment to fuel suppliers, debt servicing requirements and even payment of salaries to its employees. Under the circumstances, APCPL has no other option but to regulate power on the BSES discoms," NTPC's statement added.
The monthly energy bill for the BSES electricity distribution utilities are nearly ₹87 crore for the current financial year. In a statement, BSES said that it is under huge financial stress due to non-liquidation of regulatory assets estimated to be over ₹16,000 crore as on March 31, 2016. As compared to this, dues payable by BSES to Aravali Power Company are around ₹900 crore.
The payment of dues to power utilities by BSES discoms is subjudice in the Supreme Court. The judgment in the matter is reserved since February 2015. We are awaiting the Supreme Court judgement, which will clear the path for recovery / liquidation of regulatory assets.
Source- The Hindu