NTPC warns UP of chopping provide over Rs 919 crore unpaid dues

State-owned energy era firm NTPC Ltd has threatened to chop provide of 5,512 MW of energy to Uttar Pradesh beginning Friday if the state discom doesn’t clear dues of Rs 919 crore which were pending for greater than 45 days, in line with sources conscious of developments. The Uttar Pradesh Power Corporation Ltd (UPPCL) has dues of Rs 2,873 crore payable to NTPC.
The discover by NTPC cited tips by Central Electricity Regulatory Commission (CERC) which give {that a} energy producing firm has the precise to discontinue provide to a defaulting entity in case of non-payment of excellent dues. NTPC mentioned “in spite of repeated follow ups at various levels in person as well as through our letters … UPPCL has not yet liquidated outstanding dues.”
NTPC famous that 100 per cent of the ability provide allotted to UP could be lower initially for a interval of 15 days, as per CERC laws. Experts famous that such a big provide lower by NTPC would result in blackouts in UP, however that such a lower was unlikely and the discover was aimed toward placing strain on the discom to clear dues.