Andhra Pradesh

Genco to press for recovery of dues from TS utilities

The case was to be heard on January 30 but adjourned following a request by the Telangana utilities, says Principal Secretary (energy) Ajay Jain.

The case was to be heard on January 30 but adjourned following a request by the Telangana utilities, says Principal Secretary (energy) Ajay Jain.   | Photo Credit: K_R_DEEPAK

Case to come up for hearing in the NCLT on March 20

AP-Genco is going to press for the recovery of ₹5,732 crore, including a penal interest of approximately ₹605 crore, from the Telangana power distribution companies (Discoms) when the case comes up for hearing at the Hyderabad Bench of the National Company Law Tribunal (NCLT) on March 20.

The case was to be heard on January 30. It was adjourned following a request by the Telangana utilities, which were to pay for the power purchased from the AP-Genco stations, Principal Secretary (energy), Government of Andhra Pradesh, Ajay Jain, told The Hindu.

The AP-Genco filed petitions against the northern and southern Discoms of Telangana in June 2018 seeking payment of ₹5,127 crore, excluding the penal interest, and stopped short of supplying power to Telangana as the dues remained uncleared. At the time of bifurcation, the units of AP-Genco were divided on the basis of the geographical location of the power plants, and power had to be distributed to Telangana and A.P. in the 53:47 ratio as per the A.P. Reorganisation Act, 2014.

The AP-Genco later knocked on the door of the NCLT when the dues from Telangana started mounting.

Installed capacity

The unified State had an installed power generation capacity of about 16,500 MW. The Power Purchase Agreements remained intact for both the ongoing projects and those under construction. The Telangana utilities had originally contended that the NCLT had no jurisdiction over the issue as they were governed by the Electricity Act, 2003. On its part, the A.P. government stated that it was not in the purview of the APERC either, as the dispute was not about tariffs. AP-Genco MD K. Vijayanand is monitoring the case as the dues are to be settled in compliance with the Reorganisation Act.

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Printable version | Apr 9, 2020 4:57:12 PM | https://www.thehindu.com/news/national/andhra-pradesh/genco-to-press-for-recovery-of-dues-from-ts-utilities/article26460806.ece

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