Business Standard

Now, NTPC threatens to cut off power to Rajasthan

Sends notices to three discoms to renew line of credit, failing which it would cut supply in three days

Katya B Naidu  |  Mumbai 

After snapped to Rajasthan, state-owned power generator has taken up payment issues with the three discoms of state.

sent a regulation notice to the three discoms of the state, asking them to renew the line of credit to them of around Rs 188 crore. If the same is not renewed in the next three days (January 13, 2013), would cut of as much as 1,258 megawatt to the three discoms-- Jaipur Vidyut Vitaran Nigam, Jodhpur Vidyut Vitaran Nigam and Ajmer Vidyut Vitaran Nigam.

These discoms owe Rs 95 crore to in dues. The company has raised bills for around Rs 272 crore.

This move by came after the validity of a line of credit of Rs 121 crore expired on December 31, 2012.

“Since discoms have not extended the validity of the LC in spite of repeated follow ups, notice for regulation of on discoms is hereby given as per provisions of the Central Electricity Regulatory Commission (Regulations of Power Supply),” the regulation notice by said. 

Last week, cut to state discoms after as much as Rs 96.2 crore outstanding dues were not paid. Also, said that the discoms did not comply with it on payment security related issues.

Yesterday, the discoms paid up their outstanding dues to Tata Power. The company, however, says that the power purchase agreement between both of them stands terminated.

says that the government allows them to shut off in case of default in payment. is already in talks with other buyers in Northern and other regions to absorb the power that would be in excess. This newspaper had tried to contact state discom officials, but the efforts are yet to elicit any response.

Many state power distribution companies slipped into financial trouble last year. comes under the section of those which are in much weaker financial position. Last year, they restricted debt of Rs 35,000 crore. The state also raised its power tariffs twice last year.

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Now, NTPC threatens to cut off power to Rajasthan

Sends notices to three discoms to renew line of credit, failing which it would cut supply in three days

After Tata Power snapped power supply to Rajasthan, state-owned power generator NTPC has taken up payment issues with the three discoms of Rajasthan state.

After snapped to Rajasthan, state-owned power generator has taken up payment issues with the three discoms of state.

sent a regulation notice to the three discoms of the state, asking them to renew the line of credit to them of around Rs 188 crore. If the same is not renewed in the next three days (January 13, 2013), would cut of as much as 1,258 megawatt to the three discoms-- Jaipur Vidyut Vitaran Nigam, Jodhpur Vidyut Vitaran Nigam and Ajmer Vidyut Vitaran Nigam.

These discoms owe Rs 95 crore to in dues. The company has raised bills for around Rs 272 crore.

This move by came after the validity of a line of credit of Rs 121 crore expired on December 31, 2012.

“Since discoms have not extended the validity of the LC in spite of repeated follow ups, notice for regulation of on discoms is hereby given as per provisions of the Central Electricity Regulatory Commission (Regulations of Power Supply),” the regulation notice by said. 

Last week, cut to state discoms after as much as Rs 96.2 crore outstanding dues were not paid. Also, said that the discoms did not comply with it on payment security related issues.

Yesterday, the discoms paid up their outstanding dues to Tata Power. The company, however, says that the power purchase agreement between both of them stands terminated.

says that the government allows them to shut off in case of default in payment. is already in talks with other buyers in Northern and other regions to absorb the power that would be in excess. This newspaper had tried to contact state discom officials, but the efforts are yet to elicit any response.

Many state power distribution companies slipped into financial trouble last year. comes under the section of those which are in much weaker financial position. Last year, they restricted debt of Rs 35,000 crore. The state also raised its power tariffs twice last year.

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Business Standard
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Now, NTPC threatens to cut off power to Rajasthan

Sends notices to three discoms to renew line of credit, failing which it would cut supply in three days

After snapped to Rajasthan, state-owned power generator has taken up payment issues with the three discoms of state.

sent a regulation notice to the three discoms of the state, asking them to renew the line of credit to them of around Rs 188 crore. If the same is not renewed in the next three days (January 13, 2013), would cut of as much as 1,258 megawatt to the three discoms-- Jaipur Vidyut Vitaran Nigam, Jodhpur Vidyut Vitaran Nigam and Ajmer Vidyut Vitaran Nigam.

These discoms owe Rs 95 crore to in dues. The company has raised bills for around Rs 272 crore.

This move by came after the validity of a line of credit of Rs 121 crore expired on December 31, 2012.

“Since discoms have not extended the validity of the LC in spite of repeated follow ups, notice for regulation of on discoms is hereby given as per provisions of the Central Electricity Regulatory Commission (Regulations of Power Supply),” the regulation notice by said. 

Last week, cut to state discoms after as much as Rs 96.2 crore outstanding dues were not paid. Also, said that the discoms did not comply with it on payment security related issues.

Yesterday, the discoms paid up their outstanding dues to Tata Power. The company, however, says that the power purchase agreement between both of them stands terminated.

says that the government allows them to shut off in case of default in payment. is already in talks with other buyers in Northern and other regions to absorb the power that would be in excess. This newspaper had tried to contact state discom officials, but the efforts are yet to elicit any response.

Many state power distribution companies slipped into financial trouble last year. comes under the section of those which are in much weaker financial position. Last year, they restricted debt of Rs 35,000 crore. The state also raised its power tariffs twice last year.

image
Business Standard
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