Sources stated notices for encashment LCs are prone to be served on discoms of Madhya Pradesh, Telengana and Assam within the subsequent few days, indicating the federal government’s resolve to implement monetary self-discipline among discoms.
NTPC despatched the notices for disconnection, known as ‘regulation’ in trade parlance, on Thursday to the federal government distribution corporations of Jammu & Kashmir, Sikkim, Puducherry and Karnataka utilities HESCOMS (Hubli) and CESCORP (Chamundeshwari) since they didn’t have LCs.
The notices to BSES and BRYL have been served on January 2. NTPC, by its subsidiaries, sought Rs 999 crore from BRPL and Rs 865 crore from BYPL for energy purchased as much as March 2020. NTPC shouldn’t be urgent for fee of dues after this era when the pandemic shut down the economic system for months.
The sources stated since each the utilities have LCs, NTPC may utilise the choice of encashing them or provoke insolvency proceedings beneath the Insolvency and Bankruptcy Code if the utilities don’t clear their dues inside 10 days of the notice.
Among the state utilities, J&Okay is the most important purchaser at 1,118 MW (mega watt), HESCOM 548 MW, TESCOR 230, Puducherry 213 and Sikkim 99 MW. The whole dues of those states couldn’t be ascertained.
