The state government had been reluctant so long to float the redemption bonds as suggested by the Centre. Jharkhand government was yet to sign the required tripartite agreement with the Reserve Bank of India (RBI) and the Union government on the issue.
Under the agreement, failure to pay in the future would lead to automatic deduction of the dues from the funds payable to the state by the Centre through RBI. The redemption bond will remain valid for 15 years during which the state has to pay off the outstanding dues to NTPC.
Meanwhile, the state electricity board has received a jolt from Damodar Valley Corporation (DVC) which imposed power supply restriction in Jharkhand
