CESC Ltd, the RP Goenka power utility, is caught in a bind as the repayment of its arrears to the West Bengal State Electricity Board (WBSEB) is linked to the realisation of fuel surcharge dues from its own consumers.
And the realisation is subject to the West Bengal government allowing CESC to collect the arrears in the first place.
The company paid Rs 10 crore to WBSEB on Friday against the arrears in view of the financial crisis faced by WBSEB resulting in suspension of power supply from the National Thermal Power Corporation for non-payment of dues. CESC made the payment by borrowing from banks. However, it is unlikely to make such gestures repeatedly. Liquidation of arrears to WBSEB will depend on how soon CESC is allowed to collect its own arrears.
Moreover, there is confusion about the quantum of CESC
