BSES discoms among 7 utilities put on notice over dues by NTPC – Times of India

NEW DELHI: State-run NTPC has slapped disconnection notices on 5 discoms throughout 4 states for non-fee and threatened BSES Rajdhani Power Ltd (BRPL) and BSES Rajdhani Yamuna Ltd (BRYL), the Reliance-ADAG utilities supplying energy in Delhi, with encashment of financial institution ensures or insolvency proceedings to recuperate Rs 1,864 crore dues.
Sources stated notices for encashment LCs are more likely to be served on discoms of Madhya Pradesh, Telengana and Assam within the subsequent few days, indicating the federal government’s resolve to implement monetary self-discipline among discoms.

NTPC despatched the notices for disconnection, referred to as ‘regulation’ in business parlance, on Thursday to the federal government distribution firms of Jammu & Kashmir, Sikkim, Puducherry and Karnataka utilities HESCOMS (Hubli) and CESCORP (Chamundeshwari) since they didn’t have LCs.
The notices to BSES and BRYL have been served on January 2. NTPC, by its subsidiaries, sought Rs 999 crore from BRPL and Rs 865 crore from BYPL for energy purchased as much as March 2020. NTPC shouldn’t be urgent for fee of dues after this era when the pandemic shut down the financial system for months.
The sources stated since each the utilities have LCs, NTPC may utilise the choice of encashing them or provoke insolvency proceedings below the Insolvency and Bankruptcy Code if the utilities don’t clear their dues inside 10 days of the notice.
Among the state utilities, J&Ok is the largest purchaser at 1,118 MW (mega watt), HESCOM 548 MW, TESCOR 230, Puducherry 213 and Sikkim 99 MW. The complete dues of these states couldn’t be ascertained.