Central public sector undertaking (PSU), National Thermal Power Corporation (NTPC), has snapped 275 megawatt power from Uttar Pradesh from midnight of August 20 for not clearing dues that were outstanding for more than 45 days.
In a communication to the UP Power Corporation Limited, the Central PSU informed it that it would regulate 275.60 MW from August 20 to 29. The action is a follow-up on NTPC’s warning to UPPCL on August 12 that it would regulate the supply of 5,512 MW power from its generating stations from August 20 as it had not cleared outstanding dues for more than 45 days.
The Uttar Pradesh Power Corporation has sought and received state government guarantees for PFC-REC loans of nearly Rs 4,900 crore for payment of outstanding dues of central generating stations, independent power producers and renewable energy generators.
As of July 31, the UPPCL’s pending dues to power generation companies have risen to Rs 24,461 crore, out of which dues of Central generating stations amount to Rs 4,270 crore, while that of independent power producers are of Rs 4,675 crore. Dues payable to renewable energy generators are Rs 388 crore, while those of state generating stations are Rs 15,128 crore.
The NTPC had recently served a notice to UPPCL saying that it would snap the supply of 5,512 MW power to the latter from its generating stations from August 20 as the corporation had not cleared dues which were outstanding for more than 45 days. Against Rs 2,873 crore that is yet to be paid by UPPCL, Rs 919 crore has been outstanding for more than 45 days.
Sources in UPPCL confirmed that the government has written to NTPC, requesting it not to snap the power supply.
“We are expecting Rs 4,900 crore loans from PFC and REC any day and hope to clear the NTPC’s dues using the same amount. The state cabinet has already given its approval for the state guarantee, and the loan amount is expected to be disbursed in a day or two,” a senior UPPCL official said.
Under the Atmanirbhar Bharat package to infuse liquidity in the power sector and help discoms clear dues to electricity generators till March 2020, the Centre had released Rs 20,940 crore in two tranches. When the scheme was extended till June 2020, an additional Rs 7,000 crore was released. After this, dues had dipped substantially, but they have seen a gradual rise again.
In its action plan for 2021 and 2022 -2024 , the UPPCL has promised to achieve key operational parameters, such as bringing down the AT&C losses to below 15 per cent by 2024 and improving collection efficiencies. It also plans to install prepaid smart meters for all consumers in the state, including government connections.
Almost 40 per cent energy is supplied to rural consumers in Uttar Pradesh, where revenue collection has been difficult. Apart from this, domestic consumption accounts for 47 per cent where the tariff is below the cost of service. To add to the UPPCL’s woes, under the Saubhagya scheme, the major increase was in the rural consumer base, where recovery has always been almost negligible.