Amid reports of reduction of power supply to seven districts in the State by Damodar Valley Corporation (DVC) with effect from January 4 over non-payment of power dues, the Jharkhand Bijli Vitaran Nigam Ltd (JBVNL) said that steps have been initiated for early release of funds to the power major.
The DVC from last month (December) had already made power cuts in the seven districts — Dhanbad, Ramgarh, Hazaribagh, Koderma, Bokaro, Giridih and Chatra — by as much as 30 per cent after JBVNL faulted on payment of monthly power bills. The DVC with non-payment of power dues had already written a letter to JBVNL to make 50 per cent power cuts if the dues are not cleared.
Jharkhand Urja Vikas Nigam Limited (JUVNL) DGM PR, MP Yadav said, “For the month of September the power dues of JBVNL to DVC was Rs 150 crore, out of which the JBVNL had already paid Rs 50 crore and we have written a letter to DVC to clear all the dues soon. We have urged the DVC not to make power cuts as we have already expressed our problems in revenue generation due to Covid 19 pandemic.”
Yadav claimed that due to Covid 19 pandemic JBVNL revenue generation fell as both Centre and State have agreed not to collect power dues forcefully. Yadav said, “Despite fall in revenue collection due to Covid 19 pandemic, it was tough time for JBVNL in meeting salary expenses of staff and officials along with other measures for strengthening power scenario.” Yadav said, “Now our revenue collection is increasing we will ensure that we clear the dues of DVC.”
As per DVC power cuts fixture DVC will provide 300 MW of power in seven districts as against 600 MW earlier. As JBVNL owes Rs 5000 crore to DVC, the power major on earlier occasion had written a letter to JBVNL to clear the dues. There was also a meeting regarding the arrears in which the Union Energy Secretary was also involved. But, when the payment was not made, the central government had deducted Rs 1400 crore from the State government’s funds with the RBI.
In October last year, the Central government directed the RBI to auto deduct Rs 1417.50 crore from the account of Jharkhand government maintained by the top bank, as the first instalment against its power discoms outstanding dues to Damodar Valley Corporation (DVC), a Central public sector power generator.
Chief Minister Hemant Soren had reacted strongly and expressed “deep anguish and disappointment at the blatant and continuous attempt by the Centre to impose fiscal penalties on Jharkhand”.
Sources said that the DVC’s decision to make power cuts is once to worsen the relation of Centre and State as the State Government is sure to oppose the power cuts.
In the power tussle between JBVNL and DVC it is the common man who is the biggest sufferer. Sanjay Kumar Singh, a resident of Gomia in Bokaro district said, “There are already severe power cuts in our area. The DVC decision to make further power cuts is going to create more trouble for us. Especially for students as their studies are going to be affected.”