NTPC Tamil Nadu Energy Company Ltd, a joint venture company of NTPC and Tangedco, has served regulation notice to Tangedco, TS Transco, Gescom and Hescom for payment of dues.

NTECL, the joint venture company, which supplies 1,067 MW to Tamil Nadu and 109 MW to Telangana, has served notice to Tangedco for payment of dues of ₹1,156 crore and to TS Transco for ₹134 crore.

Gulbarga Electricity Supply Company Ltd and Hubli Electricity Supply Company Ltd both part of Karnataka have also been served notices for dues of ₹21.37 crore and ₹68 crore. The two have agreed to pay the amount.

In its notice addressed to the Chairman and Managing Director of Tangedco, it said, “As you are aware the bills for energy supplied since November 2016 from NTECL Vallur to Tamil Nadu Generation and Distribution Corporation Limited with regard to allocation of 1066.95 MW of power from the thermal power plant has remained unpaid till date. While the total bill amount is ₹1,366.46 crore, the outstanding amount is ₹1,156 crore.”

In another notice served on the Telangana utility, NTECL mentioned the allocation of 109 MW of thermal power generated from the plant to Telangana and the total due of ₹134.15 crore.

Located near Chennai, NTECL has a total installed capacity of 1,500 MW and Tamil Nadu is the major beneficiary getting around 70 per cent of the power generation and the balance is supplied to all the southern States.

Recovery of dues has been one of the major concerns for power generating units from various State distribution companies over the past several years resulting in unpaid bills mounting.

To address the financial health of the discoms, the Centre had come out with the UDAY scheme, wherein the States take over the discoms’ dues helping them to address business issues and supplies better.