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Home News Power Sector News DVC ultimatum to BSES Rajdhani: Cough up dues worth Rs 90 crore or face disconnection

DVC ultimatum to BSES Rajdhani: Cough up dues worth Rs 90 crore or face disconnection

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DVCThe AAP government's first full day in office brought some bad news on the power front. Power generation company Damodar Valley Corporation (DVC) is learned to have served a 'regulation notice' on south Delhi discom BSES Rajdhani (BRPL) for not making a payment of Rs 90 crore that fell due early this month.

In effect, it has threatened to stop supplying about 180MW power from midnight on Sunday if BRPL doesn't pay up. DVC had stopped supplying power to BRPL's sister firm, BYPL, in 2013.

While 180MW is not a significant amount of power—3% of the expected peak demand of 6,000MW this summer—for Delhi, insiders say it could signal the start of a standoff between the new AAP government that's keen to reduce tariffs, and the BSES discoms that have been clamouring for higher rates to pay off dues.

The DVC notice served on 16-02-2015 states: "Due to default in payment from BSES Rajdhani, DVC has sent a notice to stop schedule of power to BRPL w.e.f. February 22, 2015''. Delhi's discoms started buying power from DVC in April, 2007 and disputes over dues arose in 2012 and 2013 also. The matter went to Supreme Court last year with DVC claiming the BSES firms owe it about Rs 1,000 crore.

BRPL in a statement said, "Delhi Electricity Regulatory Corporation has admitted in its affidavit in Supreme Court that around Rs 9,000 crore is owed to BSES discoms. Once this amount is cleared, dues to Damodar Valley Corporation and other power utilities will be paid immediately. This regulation by DVC will have no impact on the power supply in BSES areas".

The Damodar Valley Corporation notice on the new government's first day in office is reminiscent of NTPC's threat to regulate power supply to BSES discoms days after Arvind Kejriwal became chief minister for the first time. Supreme Court had to intervene when blackouts seemed imminent over the standoff.

Back then, state-run NTPC refused to relent on its demand for dues while BSES claimed it had no money to pay bills or buy expensive power as the tariffs in the city were "unrealistic". In fact, Kejriwal had started the process to boot both BSES discoms out of Delhi if there were power cuts, but his resignation on February 14, 2014 put an end to the matter.

Source- Business standard


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