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Home News Power Sector News Dikshit weighs options as DERC deadline ends today

Dikshit weighs options as DERC deadline ends today

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Delhi CMThe Delhi government is exploring various possibilities and options to tackle the situation arising out of Reliance Infrastructure-backed discom BSES' failure to pay dues to the the tune of Rs 3,000 crore to various power generating firms, including NTPC. With city's power regulator DERC asking government to clear its stand on the issue by 22-12-2011, senior officials said a final decision on the matter is likely to be taken by Chief Minister Sheila Dikshit.

Dikshit on Wednesday held a high-level meeting with top officials of her government where various possible scenarios were discussed including about the situation if the power regulator suspends the licence of BSES to operate in the city.

"The government is yet to firm up its position. A final decision on the issue is likely to be taken by the chief minister," said a top official who was present in the meeting.

The DERC yesterday sought government's response as there is question mark on who will arrange Rs 3,000 crore if licence of BSES to operate in the city was cancelled for failing to pay the outstanding to the generation firms. The DERC has given a deadline of 3 pm tomorrow to inform it about its position on the issue. The regulator had slapped notices on BSES on November 25 asking why its licences should not be suspended for failing to clear huge dues to the generation companies and said if the Commission was not satisfied with replies by the discom, then it may suspend the licence and appoint an administrator to discharge the functions of the licensees.

NTPC had decided to cut supply of 2,000 Mw of power to BSES from December 7 but following an intervention by the chief minister, the state-run power generation company had agreed to extend the deadline to January 7. The BSES, responding to a notice of DERC last week, presented its financial position to the regulator and said it could raise a loan of Rs 5,000 crore from IDBI bank provided Delhi government gives an assistance of Rs 500 crore.

However, Delhi government had already informed DERC that it would not provide any financial assistance to BSES or bailout package to the cash-strapped company. If the power generation firms stop supply of power to BSES, then it may lead to a blackout in 70 per cent of the areas in Delhi. The combined consumer base of BSES discoms BYPL and BRPL is around 27 lakh

Replying to DERC notice of November 25, the discom on December 7 had told the regulator that it was confident of making the payments.

Not satisfied with reply of the BSES, the DERC had asked the Delhi government to present its position on the issue and the government had told the regulator that it not extend any help to the discom financially.

The city government submitted that both discoms were not making sincere efforts in resolving the crisis even after issue of showcause notice by the Commission.

Following Delhi government's reply, the regulator last week had again asked the discom to inform how it will sustain the operation and arrange the funds but the company could not offer any concrete plan on Wednesday, DERC sources said.

Source- Business standard

 

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