Huge Power-cut threat to delhi

Govt-run companies tighten screws, ask BSES to pay up Rs 3,000 crore dues

BSES was under pressure to pay over Rs 1,600 crore dues to Delhi government and state-run Damodar Valley Corporation, which had threatened to cut power supply if the Reliance Infrastructure-backed company fails to clear the outstanding amount.

Damodar Valley Corporation (DVC) told BSES that supplies power to 70 per cent areas in the city to pay up the dues, exceeding Rs 330 crore, at the earliest, failing which supply will be snapped.

Delhi government-owned power generation companies Pragati Power Corporation Ltd (PPCL) and Indraprastha Power Generation Corporation Ltd (IPGCL) have also told BSES to clear dues of Rs 1,300 crore within two-three days. And if it does not then power supply can be cut.

The threat by DVC and state government companies came on a day when the city broke all previous records of power demand which touched 5,271 MW leading to power cuts due to the gap in demand and supply.

“The two discoms of Delhi – BSES Rajdhani Power Ltd (BRPL)and BSES Yamuna Power Ltd (BYPL) – have been repeatedly requested by DVC to clear the outstandings immediately or else face the non-supply of power from its power stations,” said a DVC official.

Repeated reminders

They have been receiving power from DVC since April 2007 as per the purchase agreements signed between them. In spite of repeated reminders by DVC, the discoms have not yet made a payment, the official added. 

The discoms belong to Anil Ambani Reliance Group. A BSES spokesman said, “BRPL and BYPL have not received any regulation notice from DVC.”

The official said both BRPL and BYPL have been facing fund crunch in the absence of cost-reflective tariff which resulted in gradual depletion of cash.

“It has become increasingly difficult for BSES to meet the payment commitments to generators supplying power. DVC is also one such generating company.”

PPCL and IPGCL supply around 330 MW of power to BSES discoms BYPL and BRPL. DVC supplies nearly 280 MW electricity to BSES. 

Both PPCL and IPGCL had been asking BSES to pay up the dues for last one year but to no avail.

The BSES failed to make the payments to DVC, PPCL and IPGCL though power regulator Delhi electricity regulatory commission had earlier this year told the company to clear all the dues.

In December last year, both BYPL and BRPL had expressed their inability to clear dues to the tune of Rs 3,000 crore, which had raised the spectre of widespread power cuts with NTPC threatening to cut supply to the city.

The state government agreed to infuse fresh equity of Rs 500 crore into the company. An amount of Rs 1,020 crore was raised. The fund was used by BSES to get a loan of Rs 5,000 crore from IDBI bank.

The DERC had strictly told the discom to pay up its outstanding dues by February and had even threatened to take action if it fails to comply with the directive.

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