City stares at power crunch

Delhi faces the possibility of a severe power crunch as power generation major NTPC has warned the two distribution companies — BSES Rajdhani and BSES Yamuna — that it would stop supply to them if they do not clear dues of over `900 crores.
NTPC, which supplies 2,051 MW power to the two companies, has served notices to BSES Rajdhani and BSES Yamuna,

warning them to renew the Letter of Credit or else their power supply could be suspended.
NTPC has said that if the two discoms do not renew and maintain LCs, then the supply of power would remain “suspended till December 1, 2011”.
“Both the companies have not cleared dues for the energy supplied during the month of July 2011.
Out of total billing of `814 crores, NTPC could realise only `334 crores through the Letter of Credit.
“Further, NTPC has supplied `425 crore worth of electricity in the month of August 2011 and thereby total outstanding amounts to more than `900 crores,” sources in the state-run power generating company said.
A BSES spokesperson when contacted said, “BSES Delhi is in discussion with NTPC and bankers for resolution of the issue.”
“BSES stands committed to its 28 lakh consumers and will make all efforts to ensure that no inconvenience is caused to our customers,” he said.
Noting that the Letter of Credit (LC) is a pre-requisite for power supply, NTPC sources said BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL) have refused to renew and maintain LC despite follow up at the highest level.
NTPC does not have a back-up guarantee against default in payment by BRPL and BYPL, they said.

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