• On January 8, media reports had claimed that NTPC had served notices to six states and two Union Territories for non-payment of dues

• The list although did not include Delhi, but the payments made by the two power distribution companies comes close on the heels of the notices served by NTPC

New Delhi: Reliance Infrastructure's BSES Rajdhani Power and BSES Yamuna Power have paid Rs 400 crore to NTPC Limited's Aravali Power Corporation Private Ltd (APCPL), the company said in an official statement on Monday. On January 8, media reports had claimed that NTPC had served notices to six states and two Union Territories for non-payment of dues. The list although did not include Delhi, but the payments made by the two power distribution companies comes close on the heels of the notices served by NTPC. 

The statement said that BSES Rajdhani Power and BSES Yamuna Power have resolved the matter with NTPC's APCPL and have paid Rs 352.27 crore and Rs 47.34 crore respectively, as per the demand. "The BSES discoms are committed to supplying reliable and uninterrupted power to around 46 lakh consumers in Delhi," it added.

The two power distribution companies are joint ventures between Reliance Infrastructure and the Delhi government.

NTPC had threatened to cut off power supply in its notice

In the notice served to the six states and two Union Territories, NTPC had threatened to cut off or restrict power supply to power distribution companies if they failed to clear the dues. The states include Uttar Pradesh, Madhya Pradesh, Karnataka, Sikkim and Telangana, while the Union Territories are Jammu and Kashmir and Puducherry. Media reports claimed that the discoms in these states and Union Territories owe around Rs 19,216 crore to NTPC. 

ALSO READ: Reliance completes stake sale in Power Grid transmission JV to IndiGrid for Rs 900 cr

The dues owed by discoms to power generation companies is a long-standing issue impacting cash flow in the power sector. Discoms' inability to pay power generation companies is not only impacting payments receivable by generation companies but also coal companies that are supplying coal for power generation. The government recently announced a package of Rs 1.2 lakh crore for discoms to alleviate the stress in the sector. However, while the package may have addressed current outstanding dues, the legacy dues still remain. In November 2020, the overall outstanding dues owed by discoms stood at Rs 1.30 lakh crore.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)