NTPC JV serves notices to power utilities over Rs 1,300 cr dues

Threatens to stop supply, sell power to third parties if dues beyond 60 days aren't paid immediately

NTPC Tamilnadu Energy Company Limited (NTECL) has served notices to the power utilities of Tamil Nadu, Telangana and Karnataka for not paying power dues amounting to Rs 1,379.52 crore towards power supplied from 1,500-Mw Vallur Thermal Power Project (VTPP) at Chennai.

NTECL is a 50:50 joint venture between NTPC and the Tamil Nadu government's Tangedco.

The joint venture company has threatened to stop supply and sell the power to third parties from April 26, 2017 if the dues beyond 60 days were not paid immediately.

NTECL has submitted multiple bills totalling Rs 1,156.15 crore between December 9, 2016 and April 9, 2017 to Tamil Nadu, which draws 70 percent of power from VTPP. Telangana and Karnataka power utilities owe Rs 134.15 crore and Rs 89.52 crore respectively during the same period, according to the notices.

Meanwhile, the sources in NTPC revealed that Hubli Electric Power Supply Company Limited (Hescom) has paid Rs 48.2 crore overdue amount in response to the notices.