Rs 1,000 crore dues: Centre withholds 1,000 MW power to Karnataka

Karnataka might be headed towards a power crisis with the central government withholding 1,000MW of power over non-payment of dues, reports Sandeep Moudgal. The Centre’s decision follows a clean-up aimed at making states accountable for energy consumed.
The state is now raising funds to pay Central Generating Stations (CGS) of the National Thermal Power Corporation Limited (NTPC). Karnataka, which has five electricity supply companies (escoms), owes CGS over Rs 1,000 crore.
According to senior government officials, non-payment of dues means 1,000 MW will not be available ahead of the post-monsoon season beginning October-end.
With coal capacity down to no more than two or three days and the Centre withholding 1,000MW, Karnataka could face a serious power crisis,” said a government official.Energy minister V Sunil Kumar said: “CM Bommai has talked to the Union ministry about the withheld power. We convinced him of the need for a special package to pay the Centre and the finance department okayed it,” he said.