Public sector power producer NTPC has turned down a request from Delhi Government asking it to extend the payment schedule for Delhi electricity distribution utilities (discoms).
According to industry watchers, the environment has been politicised after Chief Minister Arvind Kejriwal asked the Comptroller and Auditor General (CAG) to audit the utilities since the time of privatisation (2002). Also, the State has decided to subsidise the electricity tariff by half for consumers using up to 400 units a month.
The Chief Minister has reportedly told news channels that Tatas and Ambanis are not the only company capable of supplying electricity. If needed, their licences would be cancelled and new companies would be invited for electricity distribution in the national capital.
Meanwhile, NTPC has rather told the State Government to intervene and ensure that BSES Yamuna Power Limited (BYPL) pays bills worth Rs 179.68 crore by January 31. “Failing this NTPC will be left with no other option but to regulate power suplly supply,” the company told Government.
Arvind Gujral, Chief Executive Officer of BSES Yamuna Power Limited (BYPL) wrote to Power Secretary of Delhi Government saying there are no funds with the discom to pay NTPC and NHPC aggregate due of Rs 204 crore for January 2014. NTPC will encash the last remaining letter of credit (LC) of Rs 84 crore and the balance Rs 120 crore will remain unpaid to the generators.
In view of non-availability of cost reflective tariff for several years, the revenue gap of BYPL till 2011-12 has touched Rs 2,855 crore, according to Delhi Electricity Regulatory Commission (DERC) order of July 31, 2013.