‘Fiscal state of discoms not as bad as stated’

Delhi’s power regulator Delhi Electricity Regulatory Commission (DERC) has found certain “discrepancies” in the audit report of Reliance Infrastructure-backed discoms BRPL and BYPL between April and December 2011 and observed that the financial condition of the companies appeared not as bad as it has been made out to be.
The DERC had asked the discoms to submit a detailed account of their monthly revenue generation and expenditure since April 2011 so as to keep a tab on their accounts.
“The commission has also noticed that there are prima-facie unexplained discrepancies in the information relating to power purchase by both BRPL (BSES Rajdhani Power Ltd) and BYPL (BSES Yamuna Power Ltd),” the DERC said in an order.
Last month, BYPL and BRPL had expressed inability to clear dues to the tune of `3,000 crores to power generation and transmission companies citing severe fund crunch which led to possibility of widespread powercuts after the NTPC threatened to stop supply for non-payment.
“In addition, the information on power purchase has not been given in the desired format prescribed by the commission for April to December, 2011. In view of the above, the commission is unable to accept the information submitted by BRPL and BYPL without any explanations. The above, coupled with other indicators such as large net cash surplus in December, 2011 (`158.40 crores in case of BRPL and `164.72 crores in case of BYPL), appear to indicate that revenue realised by BRPL and BYPL in the current months is sufficient to liquidate the current outstanding dues from September, 2011 onwards in respect of generation and transmission utilities,” said the order.
The city government had recently infused fresh equity of `500 crores into the company after initially refusing to help the discoms.

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