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Home News Power Sector News Orissa- Private Discoms owe Rs 4332 cr to Gridco

Orissa- Private Discoms owe Rs 4332 cr to Gridco

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CBIThe four power distribution companies (discoms) operating in the state- Central Electricity Supply Utility (Cesu), Western Electricity Supply Company of Orissa Ltd (Wesco), Northern Electricity Supply Company of Orissa Ltd (Nesco) and Southern Electricity Supply Company of Orissa Ltd (Southco) together owe Rs 4332.40 crore (as on Septembern 30, 2010) to the state owned Grid Corporation of Orissa Ltd, the bulk supplier of power. The three discoms owned by Reliance Energy- Wesco, Nesco and Southco owe Rs 2224.84 crore to Gridco while Cesu owes the balance amount of Rs 2107.56 crore, said state minister for energy, Atanu Sabyasachi Nayak.

Wesco owes Rs 737.78 crore to Gridco which includes bulk supply price of Rs 341.6 crore, securitised dues of Rs 220.56 crore, power bond of Rs 163.45 crore and other dues including transfer scheme receivables of Rs 12.10 crore.

Similarly, Gridco has to recover Rs 796.87 crore from Nesco, Rs 690.19 crore from Nesco and Rs 690.19 crore from Southco.

"Gridco had entered into a shareholders' agreement with the four distribution companies on April 1, 1999 for a period of five years according to which the discoms would hold 51 per cent equity.

This agreement expired on March 31, 2004 and no new agreement has been made with the discoms", the minister informed.

Blaming Orissa government for not taking action against Reliance Energy Limited (REL) even though the company has "defaulted" in paying dues, Opposition Congress demanded a CBI probe into alleged irregularities in the state''s power sector.

The issue relating to the controversy between the state owned Gridco (grid corporation of Orissa) and REL was discussed through an adjournment motion in the Assembly.
"The state government was reluctant to take action against REL even though the company had defaulted in paying its dues," said Congress member Anup Sai.

Though tenure of the share holding agreement between Gridco and REL had expired six years ago, the company has not renewed it, Sai said, adding, REL had 51 per cent stake in the three distribution companies in north, south and western region of the state.

While Gridco was looking after power distribution through CESU (central electricity supply utility of Orissa) in central region, REL was managing the job through Nesco (northen electricity supply company), Wesco (western electricity supply company) and Southco (southern electricity supply company).

Fifty-one per cent share of Nesco, Southco and Wesco was given to BSES through a bidding at a cost of Rs 117 crore by the state government when it reformed the power sector in 1997. REL has now taken over the management of BSES.

"The state government has already filed cases against REL at Orissa Electricity Regulatory Commission (OERC) and High Court for not extending the tenure of the share holding of its three discos," Energy minister Atanu S Nayak told the House while replying the debate.

Source- MSN


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