Don’t miss the latest developments in business and finance.

No power supply cut in Delhi till March 26 as SC orders Reliance Discoms to pay Rs.50 crores to NTPC

Image
ANI New Delhi
Last Updated : Feb 07 2014 | 4:00 PM IST

The Supreme Court has ordered Reliance Group-owned power distribution companies BSES Rajdhani and BSES Yamuna to make an interim payment of 50 crore rupees to the National Thermal Power Corporation (NTPC) to keep the latter from cutting off power supply in Delhi till March 26.

"The honorable Supreme Court has ordered that there should be an interim payment by the Reliance discoms,who will be paying a sum of 50 crores to the NTPC, following g which the NTPC will not disconnect the electricity supply in Delhi till 26th March, the day fixed for a further and final hearing of matters pending before the court," said a lawyer.

"It is our submission on behalf of the electricity commission that we have had great difficulty in verifying the figures they have given us. It is true, that if they are in real financial ill health, something has to be done. But every time we ask figures from them, they are non-compliant," he said.

"That was my submission before the court, and we will put forward this argument when the case comes for final disposal," he added.

The two companies had yesterday approached the apex court against the NTPC's notice. A bench headed by Chief Justice P Sathasivam had listed the case for hearing today.

In its notices, the NTPC had said that it would cut power supply if the dues are not paid by 10th of this month.

More From This Section

The NTPC says while BSES Rajdhani has not maintained a letter of credit of Rs. 271 crore, which is needed to get supply of power from its power stations, BYPL has an outstanding of Rs. 179 crore. If the companies are not able to settle theirdues within the stipulated time, it could lead to lengthy power cuts in East and Central Delhi.

The two companies supply electricity to nearly 70 percent areas of Delhi.

Earlier, the Delhi Government had warned the discoms that their licenses could be cancelled if they do not cooperate with the CAG in audit.

Warning of strict action, Delhi Chief Minister Arvind Kejriwal had earlier said: "They are saying they don't have funds. Where did all the money go? CAG audit will tell us where the money went. Let us wait for the report."

Kejriwal had accused the BSES discoms of trying to blackmail the state government by threatening to go for power cuts of up to ten hours a day.

Also Read

First Published: Feb 07 2014 | 3:45 PM IST

Next Story