The National Hydro Power Corporation (NHPC) has said the MP government had put its subsidiary Narmada Hydroelectric Development Corporation in trouble since outstanding dues to be received from the state government have reached more than Rs 600 crore. The return on equity saved the company from becoming sick, it said. To make repayment, the state has to float bonds.
Speaking to Business Standard, a top official of the company, SK Garg, said here in Bhopal, "The outstanding dues crossed Rs 600 crore (as in July 2007) because power dues were not paid and there was a gap between provisional tariffs and fixed tariffs."
NHDC has two projects – the Indira Sagar project (ISP) and Omkreshwar Project (OSP) of 1,000 Mw and 520 Mw, respectively.
As of now NHPC and the state government, which has 49 per cent in NHDC, have reached an agreement under which the state will pay EMIs of Rs 11 crore for 49 months. "So far the state government has paid Rs 44 crore," he said.
Power Secretary Sanjay Bandopadhyay told Business Standard the government had floated bonds. The details of the bonds were not available.
NHDC started power supply from the Indira Sagar project from 2004 at Rs 1.70 per unit, and the rate was increased to Rs 2 per unit last year. This gap created an outstanding amount of Rs 205 crore while on account of pending bills against a supply of approximately 5 million units of power per day the combined outstanding reached Rs 600 crore.
