Sources said notices for encashment LCs are likely to be served on discoms of Madhya Pradesh, Telengana and Assam in the next few days, indicating the government’s resolve to enforce financial discipline among discoms.
NTPC sent the notices for disconnection, called ‘regulation’ in industry parlance, on Thursday to the government distribution companies of Jammu & Kashmir, Sikkim, Puducherry and Karnataka utilities HESCOMS (Hubli) and CESCORP (Chamundeshwari) since they did not have LCs.
The notices to BSES and BRYL were served on January 2. NTPC, through its subsidiaries, sought Rs 999 crore from BRPL and Rs 865 crore from BYPL for power bought up to March 2020. NTPC is not pressing for payment of dues after this period when the pandemic shut down the economy for months.
The sources said since both the utilities have LCs, NTPC could utilise the option of encashing them or initiate insolvency proceedings under the Insolvency and Bankruptcy Code if the utilities do not clear their dues within 10 days of the notice.
Among the state utilities, J&K is the biggest buyer at 1,118 MW (mega watt), HESCOM 548 MW, TESCOR 230, Puducherry 213 and Sikkim 99 MW. The total dues of these states could not be ascertained.