NTPC today served notices of power supply suspension to the two Anil Ambani-owned distribution companies in Delhi due to payment issues.
The state-owned utility said BSES Rajdhani and BSES Yamuna had not maintained letters of credit of adequate value, a prerequisite for getting power from NTPC stations.
Since BSES Rajdhani and BSES Yamuna have not been able to provide the requisite payment security mechanism, notice for regulation of power supply for 90 days starting February 11 has been issued to both companies.
A spokesperson for BSES Rajdhani and BSES Yamuna declined to comment on the matter. Anil Ambani is the Chairman of Reliance Infrastructure, which owns the BSES companies and distributes electricity to homes in Delhi and Mumbai.
"In spite of our repeated follow-up and meeting with senior officials of BSES Rajdhani, the company has not been able to give any letter of credit for the full value within seven days, which is a breach of PPA (power purchase agreement) provisions," NTPC said in a notice today to BSES Rajdhani.
In a separate notice, NTPC said BSES Yamuna has not been able to reinstate the letter of credit for the full value so far, which is a breach of PPA provisions.
The Central Electricity Regulatory Commission (CERC) empowers generation companies to regulate power supply in case letters of credit, which are assurances of payment, are not maintained.
"CERC (Regulation of Power Supply) Regulations, 2010, also provide for regulation of power supply in case of non-maintenance of the required letter of credit or other agreed payment security mechanism (PSM)," the company said in the notice.
