Delhi

Major power outages expected as gencos default on payments

The power generation firms and the governmernt have blamed the discoms for non-payment of dues.File photo  

There is a possibility of major power cuts in the Capital, especially in posh Central Delhi as well as areas in the north, after generation in three gas-based power stations is on the brink of being shut as GAIL (India) Limited has threatened to stop supplying gas over non-payment of dues.

Instead of the discoms, the city’s two generation companies (gencos) — entities of the Delhi government — have been found to be repeatedly defaulting in payments.

Rs. 700 crore in dues

In a stern letter to the city’s two gencos — Pragati Power Corporation Limited (PPCL) and Indraprastha Power Generation Company Limited (IPGCL) — GAIL (India) Limited has asked them to pay their dues that run up to nearly Rs. 700 crore.

“Despite our various communications, PPCL/IPGCL has failed to submit LC (letter of credit) of requisite value in terms of the provisions of the GSAs/GSTCs (Gas Sale Agreements/Gas Sales and Transportation Contract),” read the letter sent to the general manager (technical) of PPCL.

The letter dated July 6 further gave the two gencos a week's time to make the complete payments “failing which GAIL will be compelled to stop gas supply,” it stated.

Blame game

However, the two gencos and the government blamed the non-payment of dues on the discoms.

“How can the gencos pay to the gas supplier if they do not receive the money from the discoms? Yet, the issue will be sorted out within three-four days. We are diverting the subsidy money to the gencos to make further payments to GAIL. Other options like taking a loan from Power Finance Corporation (PFC) is also being considered,” said Sukesh Jain, principal secretary (power).

The Tata Power Delhi Distribution Limited (TPDDL) is supposed to pay about Rs. 230 crore to PPCL and the matter is also being heard by power regulator (DERC).

The BSES Rajdhani and Yamuna (BRPL and BYPL) together owe about Rs. 400 crore.

“We have no due left on PPCL and have already sent a letter of reconciliation to them. We are yet to hear back. We had made extra payments to them and have asked to adjust the same in accordance with the tariffs set by DERC,” said Praveer Sinha, Managing Director of TPDDL.

The BSES discoms said that compared to its regulatory assets of over Rs. 16,000 crore, the company owes only around Rs. 1,700 crore to the Delhi gencos.

“The payment of dues to power utilities by BSES discoms is subjudice in the Supreme Court,” said a BSES spokesperson.


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Printable version | Oct 24, 2021 1:23:55 PM | https://www.thehindu.com/news/cities/Delhi/Major-power-outages-expected-as-gencos-default-on-payments/article14485435.ece

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