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Home News Power Sector News Nagpur franchisee SNDL offers to clear dues by March-end

Nagpur franchisee SNDL offers to clear dues by March-end

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MaharashtraNagpur City power franchisee SNDL has offered to clear the entire dues owed to MSEDCL by March-end. However, MSEDCL is yet to take a call on this offer and hence the termination notice issued to the franchisee on February 8 still stands.

A source in MSEDCL head office told TOI that in the meeting held on Monday evening, SNDL had offered to bring down the amount of arrears below the Rs74 crore bank guarantee (BG) and clear the dues completely by March end. It paid Rs25 crore on Wednesday evening against pending dues and Rs3 crore towards current bill.

"We have however, not decided whether to accept the offer in toto or not. We may ask the franchisee to clear the dues by February-end instead of March. However, the final picture will be cleared very soon," the source said. "We had started the process of encashing Rs42 crore out of the Rs74 crore BG. However, following the meeting on Monday this process was stopped," he added.

The source further said that MSEDCL was exploring options to ensure that SNDL did not default in future. "These include asking the company to increase the BG equivalent to two months of MSEDCL's bills. This amount will be around Rs100 crore. SNDL's escrow account with us is capped at 90%, we may ask it to increase it to 95% temporarily until the dues are cleared," he told TOI.

SNDL was served the first show cause notice on December 15 when the dues reached Rs83 crore against BG of Rs74 crore. It was given the second show cause on February 1 asking it to pay up by February 8. When that did not happen, SNDL was served a termination notice.

Consumers owe Rs60 cr to SNDL

SNDL is unable to clear MSEDCL dues because it not able to recover bills from a large number of consumers. The total amount owed to SNDL by the defaulters has crossed Rs60 crore. Of this amount Rs35 crore is owed by some 20,000 consumers, who have not paid their bills since last six months. Most of these consumers are located in Tajbagh, Lashkaribagh, Mominpura and Sweeper Colony localities.

Source- TOI


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