NTPC has warned that power supply to Anil Ambani group's distribution companies in Delhi -- BSES Rajdhani and BSES Yamuna -- would be stopped if they do not clear dues of over Rs 900 crore.
The state-run power generating company, which supplies 2,051 MW power to the two companies, has served notices asking them to renew the Letter of Credit or the supply could be suspended.
"Both the companies have not cleared dues for the energy supplied during the month of July 2011. Out of total billing of Rs 814 crore, NTPC could realise only Rs 334 crore through the Letter of Credit.
"Further, NTPC has supplied Rs 425 crore worth of electricity in the month of August 2011 and thereby total outstanding amounts to more than Rs 900 crore," NTPC sources said.
A BSES spokesperson when contacted said, "BSES Delhi is in discussion with NTPC and bankers for resolution of the issue."
"BSES stands committed to its 28 lakh consumers and will make all efforts to ensure that no inconvenience is caused to our customers," he added.
Noting that the Letter of Credit (LC) is a pre-requisite for power supply, NTPC sources said BSES Rajdhani Power (BRPL) and BSES Yamuna Power (BYPL) have refused to renew and maintain LC despite "follow up at the highest level".
NTPC does not have a back-up guarantee against default in payment by BRPL and BYPL, they added.
According to the similarly-worded separate notices served to BRPL and BYPL, NTPC has pointed out that if BRPL and BYPL do not renew and maintain LCs, then the supply of power would remain "suspended till December 1, 2011".
After that, the central utility would also have the right to immediately terminate Power Purchase Agreements (PPAs) with the two entities.
"NTPC has served notice for regulation of power supply in terms of PPA and as per CERC Regulations w.e.f. September 7, 2011," sources said.
"Unless the issue is settled on war footing basis, licensed area of BRPL and BYPL will see huge power cut w.e.f. September 7, 2011," they noted.
