Due to “non-payment of dues” by BSES Rajdhani Power limited (BRPl) and BSES Yamuna Power limited (BYPl), Delhi Transco limited (DTl) claimed on Monday that it was facing severe fund crunch which is affecting day-to-day maintenance and operation of the network. It said if the payments are not made, DTl may not be able to make salary payment of its employees, which may lead to a serious crisis in future.
However, a DTl spokesperson said, “Though DTl is facing financial hardship, but will ensure that the people of Delhi get uninterrupted power supply.”
Meanwhile, BSES responded that the payment of dues to power utilities by BSES discoms is sub-judice in the Supreme Court and the judgement in the matter is reserved and awaited since February 2015.
According to DTl, the two Reliance-backed power discoms owe sums to the tunes of Rs 1,958 crore as wheeling charges to the State transmission company.
The total accumulated dues on BRPl and BYPl as on February 29 are Rs 1,170.89 crore and Rs 787.16 crore respectively, said DTl in a statement. “This amount has been accumulating since October, 2010 as these companies were making part payments,” it added.
DTl further claimed that while both BRPl and BYPl are not making any payment to DTl, they are making payment of the dues of most of the Central Sector Generating and Transmission Companies as well as the Generating Companies of its own group in time.
“This is a highly discriminatory and unfair approach on the part of BRPl and BYPl and should be avoided in the larger interest of the power sector of Delhi,” said the DTl.
“Due to worsening cash flow situation, DTl is not able to implement work of Capital project, which may affect delivery of power to citizens for no fault of itself. DTl is not able to mobilise sufficient funds in meeting out the day to day maintenance expenses which is normally larger during the summer time. If this kind of situation continues further, there may be serious system failure which may lead to serious power crisis in the national Capital during the ongoing summer for want of funds for the maintenance of its transmission system,” the statement said.
It added that Delhi Transco is living with the borrowings from banks and other sources which also are becoming difficult “as prospective lenders see no inflow of funds to DTl from its legitimate and bonafide beneficiaries like BRPl and BYPl”.
In response, BSES said, “The total Regulatory Assets of BSES as acknowledged by the DERC till 2013-14 are Rs 8,000 crore, crore. Additionally, DERC has also admitted in the Supreme Court that there are Appellate Tribunal (ATE) judgements of Rs 4,500 crore in favour of BSES. Along with the interest, the total money owed to BSES discoms would be in excess of Rs 16,000 crore as on March 31, 2016. On the other hand, dues payable to various generating and transmission companies are around Rs 9,000 crore (DTl around Rs 1,700 crore).”
“We are awaiting the SC judgement, which will clear the path of recovery/ liquidation of the regulatory assets. BSES discoms are also making concerted efforts to address the situation and clear pending dues in a just and equitable manner. The delay in liquidation of BSES’ revenue gap of more than Rs 16,000 crore has created a grave financial situation for BSES discoms, resulting in unbearable stress in relation to payments to the various power utilities and other stakeholders,” it added.
It must be noted that the Supreme Court, in its order dated March 26, 2014, had directed power discoms to make regular payment of current dues from January 1, 2014. Supreme Court reiterated the same in its subsequent orders dated May 6, 2014 and July 3, 2014.
According to DTl, BRPl and BYPl are not making payment of current dues either and it has already filed contempt petition in Supreme Court in this regard. The next date of hearing in this case is on April 4.