The National Thermal Power Corporation's plans to get tough with defaulting state electricity boards (SEBs) have been put on the back burner. The corporation has ruled out regulating supplies till the elections are over.
The outstanding amount with the four eastern region power agencies--West Bengal State Electricity Board (WBSEB), Bihar State Electricity Board (BSEB), Gridco and Damodar Valley Corporation (DVC)--has crossed Rs 3,000 crore, including late payment surcharge. The letters of credit opened by these four agencies are only 55 per cent of their regular drawal of NTPC energy.
The drawal of surplus NTPC power by agencies outside the eastern region has also slumped drastically. The exported power is mostly against letters of credit. All these have put severe pressure on the finances of NTPC's eastern region plants at Farakka, Kahelgaon and Talcher.
What is worrying the NTPC is that the impact of power regulation on the defaulting SEBs may not have the desired impact with the onset of winter. The regulation plans cannot be given effect until a new government takes office. This will push back any punitive programme till end of November or early December when demand for power will be somewhat depressed.
Currently, West Bengal SEB has opened a letter of credit of Rs 25 crore, while another Rs 5 crore is paid in cash. Bihar SEB's letter of credit is also of Rs 25 crore. Gridco has a letter of credit for Rs 32 crore, while DVC's letter of credit is worth Rs 13 crore. Together, the letters of credit add up to Rs 95 crore. However, the monthly billing is, at least, Rs 180 crore, resulting in a shortfall of Rs 85 crore.
Further, with a drastic fall in NTPC's power export to other regions, the revenue earning has received a setback since the export of power is almost fully backed by letter of credit.
Currently, only Madhya Pradesh is importing power of 350 mw from the eastern region. Others are unlikely to resume import till the monsoon is over and their own hydel generation reduces.
The three NTPC plants in the eastern region have a total installed capacity of 3,440 mw. However, the Eastern Region Electricity Board (EREB) has pegged the corporation's "peak" generation in August at 1,643 mw and the "off-peak" generation at 1,178 mw.
The 1,600 mw Farakka plant has been given a peak and off-peak generation schedule of 629 mw and 410 mw
