NTPC resumes power supply after Sikkim govt assures payment

NTPC has restored power supply to Sikkim after the state’s assurance of paying the outstanding amount of Rs 89-crore in a time-bound manner, a company official said on Sunday.

From midnight of March 3, the country’s largest power producer NTPC had stopped 105 megawatt (MW) of power supply to Sikkim because of non-payment of Rs 89 crore outstanding dues. Despite the requirement of a Letter of Credit, Sikkim was not maintaining the same.

“NTPC Ltd has today (March 7) restored power supply to the state from 00:00 hours,” the official said.

Sikkim has committed to releasing the outstanding amount within the time frame of six months. It has opened a Letter of Credit (LC) and the state has paid bills for two months to NTPC, the official informed.

The power distribution utilities are mandated to open a Letter of Credit for getting power supply from generation firms.