Tangedco has left out ₹700 crore in renewable energy dues under liquidation scheme, says NLC

Tangedco is NLC India’s biggest customer, but has said that the ₹700 crore payment is being disputed

November 07, 2022 12:00 pm | Updated 12:00 pm IST - CHENNAI

NLC India Ltd., a central public sector undertaking, has pointed out that the Tamil Nadu Generation and Distribution Corporation (Tangedco) has left out ₹700 crore in outstanding dues to the company for renewable energy bills while opting for the Centre’s scheme to enable distribution companies to clear their legacy dues. Tangedco is the biggest customer of NLC.

Tangedco has responded that the payment of the sum has been disputed before The Appellate Tribunal for Electricity; hence, it was excluded.

According to the data shared by the NLC management at a first quarter, FY2023 earnings investors meet, Tangedco’s thermal dues have reduced 42% to ₹1,860.93 crore in the April-June 2022 period from ₹3,222.73 crore in the same period last year. The NLC management has also pointed out that the overall dues have come down to ₹4,856.98 crore in the first quarter of FY 2023 from ₹6,940.56 crore in the same quarter last year.

The Centre notified the LPS (Late Payment Surcharge and Related Matters) Rules, 2022, for liquidation of arrears to help power distribution companies clear their legacy dues existing as on June 3, 2022.

Under the scheme, distribution companies will be given a one-time relaxation in which the outstanding amount, including the principal and the late payment surcharge, will be frozen without any further surcharge. The discoms are given the option of paying the outstanding amount in up to 48 instalments.

The Southern Regional Power Committee has pointed out that the whole amount needs to be considered while opting for the scheme. Only the dues stayed by a competent court or tribunal or a dispute resolution agency need to be excluded as per the definition of outstanding dues in the LPS Rules.

It told the distribution companies and the generators to settle the issues mutually under the scheme.

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