Gridco To Pay Ntpc Through Bond Issue

Grid Corporation of Orissa (Gridco) plans to issue bonds worth Rs 200 crore to National Thermal Power Corporation (NTPC) to settle a dispute over claims of arrears.

The Orissa government had endorsed Gridco's proposal in this regard, officials said. They said the corporation will issue bonds with government guarantee to NTPC, pending final decision on the issue.

NTPC has claimed dues of about Rs 450 crore. Gridco says that NTPC has caused unwanted injection of power into the Orissa grid.

According to Gridco, NTPC injects 300 mw against the requirement of 250 mw per day. The extra power forces Gridco to withhold drawal of low-cost power from hydel stations and captive plants of National Aluminium Company Ltd and Indian Charge Chrome Ltd. Taking these factors into account, Gridco assesses its dues at Rs 76.69 crore.

Even on the higher side, the arrears should not exceed Rs 300 crore, sources said.

Orissa Chief Minister JB Patnaik had held discussion with NTPC chairman Rajendra Singh here in August and decided that a joint reconciliation of the claim would be made shortly. In case the proposed reconciliation fails, the issue will be referred for arbitration, sources added.

Meanwhile, following discontinuance of supply to Bengal by NTPC on similar grounds, the state government mooted a contingency plan to meet any such eventuality. Gridco will be forced to suspend the current transmission of 420 mw to Madhya Pradesh and 50 mw to Andhra Pradesh, sources added.