DVC introduces 'Cash and Carry' policy for its customers

Dissatisfied with the Jharkhand government's decision to clear only Rs 200 crore out of the Rs 4,370-crore arrears, the Damodar Valley Corporation (DVC) today decided to supply power based on "cash and carry" policy on week-to-week basis to all its customers.
DVC Chairman A W K Langastec said the decision was taken at a high level meeting of the company after the state government had decided to pay only Rs 200 crore against the huge dues.
"The decision of 'cash and carry' policy will be applicable to all its customers from now on to take DVC out of the financial crisis," he said at a press conference here.

He said the state's decision to pay the meagre amount came despite Jharkhand Energy Minister Rajendra Prasad Singh having "agreed" to pay Rs 2,500 crore dues to the DVC immediately to maintain its normal power generation.
Stating that the public sector is passing through acute financial stress for the past several months due to non-payment of dues from Jharkhand Urja Vikash Nigam Limited (JUVNL), he said, "The DVC cannot afford to pile up dues from its customers."
Langastec, who took over as DVC Chairman on September 1, said the huge arrears had forced the public sector to shut down three of its existing power plants at Bokaro, Chandrapura in Jharkhand and Mejia in West Bengal due to shortage of coal and other raw materials.

Describing the decision to shut down the plants as painful, he alleged that the reason behind piling up arrears was that the JUVNL was not paying monthly bills of Rs 165 crore regularly.
Stating that there would be a drastic cut in power supply by the DVC to seven districts in Jharkhand, he sought to know how could the power utility afford to pay arrears amounting to Rs 2,000 crore to Coal India Limited.
The chairman said that he would visit Ranchi tomorrow to meet Governor Syed Ahmed, Chief Minister Hemant Soren and the Energy Minister to inform them about the company's decision.