'Discrepancies in R-Infra-backed discoms'

Financial health of the firms appeared not as bad as it has been made out to be: DERC

The Delhi Electricity Regulatory Commission (DERC) has found certain 'discrepancies' in the audit report of Reliance Infrastructure-backed discoms BRPL and BYPL between April and December 2011. The power regulator observed the financial condition of the companies appeared not as bad as it has been made out to be.

DERC last month had asked the discoms for detailed account of their monthly revenue generation and expenditure since April 2011.

"There are prima-facie unexplained discrepancies in the information relating to power purchase by both BRPL (BSES Rajdhani Power Ltd) and BYPL (BSES Yamuna Power Ltd)," the DERC said in an order.

Last month, BYPL and BRPL had expressed inability to clear dues of Rs 3,000 crore to various power generation and transmission companies, citing severe fund crunch, which led to the possibility of widespread power cuts with NTPC threatening to cut supply.

Although the city government initially refused to help the discoms, later it agreed to infuse fresh equity of Rs 500 crore. The Delhi government has 49 per cent share in the two discoms, while Reliance Infrastructure has 51 per cent share. After the government agreed to offer financial help, DERC had asked the BYPL and BRPL to provide month-wise details of revenue generation and expenditure since April 2011.

The regulator told the discoms to pay dues to the power utilities by February 1, and threatened to take action if it fails to comply with the directive.