Punjab Newsline
NTPC threatens to regulate power supply to J & K
VINOD KUMAR GUPTA
Monday, 30 March 2009
NEW DELHI: NTPC has threatened to regulate power supplies to the state of Jammu and Kashmir, pending liquidation of its electricity dues. The state has totaled up arrears of over Rs.222 crore, against power supplied from NTPC stations. Notably, J & K has also failed to heed a notice issued in this direction by the Central Electricity Regulatory Commission.

CERC has issued a notice to Government of J & K for its failure to liquidate the cumulative interchange dues to the tune of Rs. 222 crores for the month of July and August 2008.This is over and above the hangover of past.

Pertinently, CERC had ordered on May 13, 2008, that the state government was required to liquidate its electricity dues of Rs 666 crore in six equal monthly installments of Rs 111 crore each starting June 2008. However, the J & K state power department failed to comply with the commission's orders by not paying installments for the months of July and August.

Ministry of Power has urged NTPC to approach the Ministry of Home Affairs, who would direct the finance ministry to deduct the outstanding amount from the normal central assistance to the state, in case it fails to clears its dues summarily. The public sector generator has the right to move the finance ministry under the strengthened payment security mechanism granted to it by the Government of India for recovery of electricity dues from the various state electricity boards , most of which are running under huge losses, and, so, their capacity to pay for electricity procured from power generators remains doubtful